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q_com029
How did the Mac segment's performance in 2022 compare to that in 2020?
The Mac segment showed significant growth between 2020 and 2022. In 2020, Mac revenue was approximately $28.6 billion. This increased to around $35.2 billion in 2021 and further to approximately $40.2 billion in 2022. The growth rates were approximately 23.1% from 2020 to 2021, and about 14.2% from 2021 to 2022.
Comparison
21
0000320193-22-000108
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Apple Inc. 10-K form for the fiscal year ended 2022-09-24, page 21: Products and Services Performance The following table shows net sales by category for 2022, 2021 and 2020 (dollars in millions): | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------|:-------|:--------|:-------|:----|:-----|:---|:-------|:---|:--------|:---|:---|:---|:-------|:---|:--------| | 1 | | 2022 | | Change | | 2021 | | Change | | 2020 | | | | | | | | 2 | Net sales by category: | | | | | | | | | | | | | | | | | 3 | iPhone (1) | $ | 205,489 | | | 7 | % | | $ | 191,973 | | | 39 | % | $ | 137,781 | | 4 | Mac (1) | 40,177 | | | 14 | % | | 35,190 | | | 23 | % | | 28,622 | | | | 5 | iPad (1) | 29,292 | | | (8) | % | | 31,862 | | | 34 | % | | 23,724 | | | | 6 | Wearables, Home and Accessories (1)(2) | 41,241 | | | 7 | % | | 38,367 | | | 25 | % | | 30,620 | | | | 7 | Services (3) | 78,129 | | | 14 | % | | 68,425 | | | 27 | % | | 53,768 | | | | 8 | Total net sales | $ | 394,328 | | | 8 | % | | $ | 365,817 | | | 33 | % | $ | 274,515 | (1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod mini and accessories. (3)Services net sales include sales from the Company's advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. iPhone iPhone net sales increased during 2022 compared to 2021 due primarily to higher net sales from the Company's new iPhone models released since the beginning of the fourth quarter of 2021. Mac Mac net sales increased during 2022 compared to 2021 due primarily to higher net sales of laptops. iPad iPad net sales decreased during 2022 compared to 2021 due primarily to lower net sales of iPad Pro. Wearables, Home and Accessories Wearables, Home and Accessories net sales increased during 2022 compared to 2021 due primarily to higher net sales of Apple Watch and AirPods. Services Services net sales increased during 2022 compared to 2021 due primarily to higher net sales from advertising, cloud services and the App Store. Apple Inc. | 2022 Form 10-K | 21
Products and Services Performance The following table shows net sales by category for 2022, 2021 and 2020 (dollars in millions): | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------|:-------|:--------|:-------|:----|:-----|:---|:-------|:---|:--------|:---|:---|:---|:-------|:---|:--------| | 1 | | 2022 | | Change | | 2021 | | Change | | 2020 | | | | | | | | 2 | Net sales by category: | | | | | | | | | | | | | | | | | 3 | iPhone (1) | $ | 205,489 | | | 7 | % | | $ | 191,973 | | | 39 | % | $ | 137,781 | | 4 | Mac (1) | 40,177 | | | 14 | % | | 35,190 | | | 23 | % | | 28,622 | | | | 5 | iPad (1) | 29,292 | | | (8) | % | | 31,862 | | | 34 | % | | 23,724 | | | | 6 | Wearables, Home and Accessories (1)(2) | 41,241 | | | 7 | % | | 38,367 | | | 25 | % | | 30,620 | | | | 7 | Services (3) | 78,129 | | | 14 | % | | 68,425 | | | 27 | % | | 53,768 | | | | 8 | Total net sales | $ | 394,328 | | | 8 | % | | $ | 365,817 | | | 33 | % | $ | 274,515 | (1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod mini and accessories. (3)Services net sales include sales from the Company's advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. iPhone iPhone net sales increased during 2022 compared to 2021 due primarily to higher net sales from the Company's new iPhone models released since the beginning of the fourth quarter of 2021. Mac Mac net sales increased during 2022 compared to 2021 due primarily to higher net sales of laptops. iPad iPad net sales decreased during 2022 compared to 2021 due primarily to lower net sales of iPad Pro. Wearables, Home and Accessories Wearables, Home and Accessories net sales increased during 2022 compared to 2021 due primarily to higher net sales of Apple Watch and AirPods. Services Services net sales increased during 2022 compared to 2021 due primarily to higher net sales from advertising, cloud services and the App Store. Apple Inc. | 2022 Form 10-K | 21
Apple Inc. 10-K form for the fiscal year ended 2022-09-24, page 21: Products and Services Performance The following table shows net sales by category for 2022, 2021 and 2020 (dollars in millions): <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2021</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2020</td></tr><tr><td colspan="3">Net sales by category:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">iPhone (1)</td><td>$</td><td>205,489 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td>$</td><td>191,973 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td>%</td><td colspan="3"></td><td>$</td><td>137,781 </td><td></td></tr><tr><td colspan="3">Mac (1)</td><td colspan="2">40,177 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td>%</td><td colspan="3"></td><td colspan="2">35,190 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td colspan="2">28,622 </td><td></td></tr><tr><td colspan="3">iPad (1)</td><td colspan="2">29,292 </td><td></td><td colspan="3"></td><td colspan="2">(8)</td><td>%</td><td colspan="3"></td><td colspan="2">31,862 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td>%</td><td colspan="3"></td><td colspan="2">23,724 </td><td></td></tr><tr><td colspan="3">Wearables, Home and Accessories (1)(2)</td><td colspan="2">41,241 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td colspan="2">38,367 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td>%</td><td colspan="3"></td><td colspan="2">30,620 </td><td></td></tr><tr><td colspan="3">Services (3)</td><td colspan="2">78,129 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td>%</td><td colspan="3"></td><td colspan="2">68,425 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td>%</td><td colspan="3"></td><td colspan="2">53,768 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td>$</td><td>394,328 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td>365,817 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td>$</td><td>274,515 </td><td></td></tr></table> (1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod mini and accessories. (3)Services net sales include sales from the Company's advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. iPhone iPhone net sales increased during 2022 compared to 2021 due primarily to higher net sales from the Company's new iPhone models released since the beginning of the fourth quarter of 2021. Mac Mac net sales increased during 2022 compared to 2021 due primarily to higher net sales of laptops. iPad iPad net sales decreased during 2022 compared to 2021 due primarily to lower net sales of iPad Pro. Wearables, Home and Accessories Wearables, Home and Accessories net sales increased during 2022 compared to 2021 due primarily to higher net sales of Apple Watch and AirPods. Services Services net sales increased during 2022 compared to 2021 due primarily to higher net sales from advertising, cloud services and the App Store. Apple Inc. | 2022 Form 10-K | 21
Products and Services Performance The following table shows net sales by category for 2022, 2021 and 2020 (dollars in millions): <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2021</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2020</td></tr><tr><td colspan="3">Net sales by category:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">iPhone (1)</td><td>$</td><td>205,489 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td>$</td><td>191,973 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td>%</td><td colspan="3"></td><td>$</td><td>137,781 </td><td></td></tr><tr><td colspan="3">Mac (1)</td><td colspan="2">40,177 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td>%</td><td colspan="3"></td><td colspan="2">35,190 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td colspan="2">28,622 </td><td></td></tr><tr><td colspan="3">iPad (1)</td><td colspan="2">29,292 </td><td></td><td colspan="3"></td><td colspan="2">(8)</td><td>%</td><td colspan="3"></td><td colspan="2">31,862 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td>%</td><td colspan="3"></td><td colspan="2">23,724 </td><td></td></tr><tr><td colspan="3">Wearables, Home and Accessories (1)(2)</td><td colspan="2">41,241 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td colspan="2">38,367 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td>%</td><td colspan="3"></td><td colspan="2">30,620 </td><td></td></tr><tr><td colspan="3">Services (3)</td><td colspan="2">78,129 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td>%</td><td colspan="3"></td><td colspan="2">68,425 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td>%</td><td colspan="3"></td><td colspan="2">53,768 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td>$</td><td>394,328 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td>365,817 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td>$</td><td>274,515 </td><td></td></tr></table> (1)Products net sales include amortization of the deferred value of unspecified software upgrade rights, which are bundled in the sales price of the respective product. (2)Wearables, Home and Accessories net sales include sales of AirPods, Apple TV, Apple Watch, Beats products, HomePod mini and accessories. (3)Services net sales include sales from the Company's advertising, AppleCare, cloud, digital content, payment and other services. Services net sales also include amortization of the deferred value of services bundled in the sales price of certain products. iPhone iPhone net sales increased during 2022 compared to 2021 due primarily to higher net sales from the Company's new iPhone models released since the beginning of the fourth quarter of 2021. Mac Mac net sales increased during 2022 compared to 2021 due primarily to higher net sales of laptops. iPad iPad net sales decreased during 2022 compared to 2021 due primarily to lower net sales of iPad Pro. Wearables, Home and Accessories Wearables, Home and Accessories net sales increased during 2022 compared to 2021 due primarily to higher net sales of Apple Watch and AirPods. Services Services net sales increased during 2022 compared to 2021 due primarily to higher net sales from advertising, cloud services and the App Store. Apple Inc. | 2022 Form 10-K | 21
q_com030
How did Apple's revenue from Greater China change from 2020 to 2022?
Apple's revenue from Greater China experienced significant fluctuations between 2020 and 2022. In 2020, revenue from Greater China was approximately $40.3 billion. This increased to around $68.4 billion in 2021, reflecting a growth rate of about 69.7%, driven by the strong demand for the iPhone 12 and other products. However, in 2022, revenue from Greater China was $74.2 billion, representing a modest growth rate of about 8.5% from 2021.
Comparison
22
0000320193-22-000108
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Apple Inc. 10-K form for the fiscal year ended 2022-09-24, page 22: Segment Operating Performance The Company manages its business primarily on a geographic basis. The Company's reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company's other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company's customers and distribution partners and the unique market dynamics of each geographic region. Further information regarding the Company's reportable segments can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 11, "Segment Information and Geographic Data." The following table shows net sales by reportable segment for 2022, 2021 and 2020 (dollars in millions): | | | | | | | | | | | | | | | | | | |---:|:---------------------------------|:-------|:--------|:-------|:----|:-----|:---|:-------|:---|:--------|:---|:---|:---|:-------|:---|:--------| | 1 | | 2022 | | Change | | 2021 | | Change | | 2020 | | | | | | | | 2 | Net sales by reportable segment: | | | | | | | | | | | | | | | | | 3 | Americas | $ | 169,658 | | | 11 | % | | $ | 153,306 | | | 23 | % | $ | 124,556 | | 4 | Europe | 95,118 | | | 7 | % | | 89,307 | | | 30 | % | | 68,640 | | | | 5 | Greater China | 74,200 | | | 9 | % | | 68,366 | | | 70 | % | | 40,308 | | | | 6 | Japan | 25,977 | | | (9) | % | | 28,482 | | | 33 | % | | 21,418 | | | | 7 | Rest of Asia Pacific | 29,375 | | | 11 | % | | 26,356 | | | 35 | % | | 19,593 | | | | 8 | Total net sales | $ | 394,328 | | | 8 | % | | $ | 365,817 | | | 33 | % | $ | 274,515 | Americas Americas net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Services and Mac. Europe Europe net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during 2022. Greater China Greater China net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The strength of the renminbi relative to the U.S. dollar had a favorable year-over-year impact on Greater China net sales during 2022. Japan Japan net sales decreased during 2022 compared to 2021 due to the weakness of the yen relative to the U.S. dollar. Rest of Asia Pacific Rest of Asia Pacific net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Mac and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Rest of Asia Pacific net sales during 2022. Apple Inc. | 2022 Form 10-K | 22
Segment Operating Performance The Company manages its business primarily on a geographic basis. The Company's reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company's other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company's customers and distribution partners and the unique market dynamics of each geographic region. Further information regarding the Company's reportable segments can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 11, "Segment Information and Geographic Data." The following table shows net sales by reportable segment for 2022, 2021 and 2020 (dollars in millions): | | | | | | | | | | | | | | | | | | |---:|:---------------------------------|:-------|:--------|:-------|:----|:-----|:---|:-------|:---|:--------|:---|:---|:---|:-------|:---|:--------| | 1 | | 2022 | | Change | | 2021 | | Change | | 2020 | | | | | | | | 2 | Net sales by reportable segment: | | | | | | | | | | | | | | | | | 3 | Americas | $ | 169,658 | | | 11 | % | | $ | 153,306 | | | 23 | % | $ | 124,556 | | 4 | Europe | 95,118 | | | 7 | % | | 89,307 | | | 30 | % | | 68,640 | | | | 5 | Greater China | 74,200 | | | 9 | % | | 68,366 | | | 70 | % | | 40,308 | | | | 6 | Japan | 25,977 | | | (9) | % | | 28,482 | | | 33 | % | | 21,418 | | | | 7 | Rest of Asia Pacific | 29,375 | | | 11 | % | | 26,356 | | | 35 | % | | 19,593 | | | | 8 | Total net sales | $ | 394,328 | | | 8 | % | | $ | 365,817 | | | 33 | % | $ | 274,515 | Americas Americas net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Services and Mac. Europe Europe net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during 2022. Greater China Greater China net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The strength of the renminbi relative to the U.S. dollar had a favorable year-over-year impact on Greater China net sales during 2022. Japan Japan net sales decreased during 2022 compared to 2021 due to the weakness of the yen relative to the U.S. dollar. Rest of Asia Pacific Rest of Asia Pacific net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Mac and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Rest of Asia Pacific net sales during 2022. Apple Inc. | 2022 Form 10-K | 22
Apple Inc. 10-K form for the fiscal year ended 2022-09-24, page 22: Segment Operating Performance The Company manages its business primarily on a geographic basis. The Company's reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company's other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company's customers and distribution partners and the unique market dynamics of each geographic region. Further information regarding the Company's reportable segments can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 11, "Segment Information and Geographic Data." The following table shows net sales by reportable segment for 2022, 2021 and 2020 (dollars in millions): <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2021</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2020</td></tr><tr><td colspan="3">Net sales by reportable segment:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Americas</td><td>$</td><td>169,658 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td>%</td><td colspan="3"></td><td>$</td><td>153,306 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td>$</td><td>124,556 </td><td></td></tr><tr><td colspan="3">Europe</td><td colspan="2">95,118 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td colspan="2">89,307 </td><td></td><td colspan="3"></td><td colspan="2">30 </td><td>%</td><td colspan="3"></td><td colspan="2">68,640 </td><td></td></tr><tr><td colspan="3">Greater China</td><td colspan="2">74,200 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td>%</td><td colspan="3"></td><td colspan="2">68,366 </td><td></td><td colspan="3"></td><td colspan="2">70 </td><td>%</td><td colspan="3"></td><td colspan="2">40,308 </td><td></td></tr><tr><td colspan="3">Japan</td><td colspan="2">25,977 </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td>%</td><td colspan="3"></td><td colspan="2">28,482 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td colspan="2">21,418 </td><td></td></tr><tr><td colspan="3">Rest of Asia Pacific</td><td colspan="2">29,375 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td>%</td><td colspan="3"></td><td colspan="2">26,356 </td><td></td><td colspan="3"></td><td colspan="2">35 </td><td>%</td><td colspan="3"></td><td colspan="2">19,593 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td>$</td><td>394,328 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td>365,817 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td>$</td><td>274,515 </td><td></td></tr></table> Americas Americas net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Services and Mac. Europe Europe net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during 2022. Greater China Greater China net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The strength of the renminbi relative to the U.S. dollar had a favorable year-over-year impact on Greater China net sales during 2022. Japan Japan net sales decreased during 2022 compared to 2021 due to the weakness of the yen relative to the U.S. dollar. Rest of Asia Pacific Rest of Asia Pacific net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Mac and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Rest of Asia Pacific net sales during 2022. Apple Inc. | 2022 Form 10-K | 22
Segment Operating Performance The Company manages its business primarily on a geographic basis. The Company's reportable segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas includes both North and South America. Europe includes European countries, as well as India, the Middle East and Africa. Greater China includes China mainland, Hong Kong and Taiwan. Rest of Asia Pacific includes Australia and those Asian countries not included in the Company's other reportable segments. Although the reportable segments provide similar hardware and software products and similar services, each one is managed separately to better align with the location of the Company's customers and distribution partners and the unique market dynamics of each geographic region. Further information regarding the Company's reportable segments can be found in Part II, Item 8 of this Form 10-K in the Notes to Consolidated Financial Statements in Note 11, "Segment Information and Geographic Data." The following table shows net sales by reportable segment for 2022, 2021 and 2020 (dollars in millions): <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2021</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">2020</td></tr><tr><td colspan="3">Net sales by reportable segment:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Americas</td><td>$</td><td>169,658 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td>%</td><td colspan="3"></td><td>$</td><td>153,306 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td>$</td><td>124,556 </td><td></td></tr><tr><td colspan="3">Europe</td><td colspan="2">95,118 </td><td></td><td colspan="3"></td><td colspan="2">7 </td><td>%</td><td colspan="3"></td><td colspan="2">89,307 </td><td></td><td colspan="3"></td><td colspan="2">30 </td><td>%</td><td colspan="3"></td><td colspan="2">68,640 </td><td></td></tr><tr><td colspan="3">Greater China</td><td colspan="2">74,200 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td>%</td><td colspan="3"></td><td colspan="2">68,366 </td><td></td><td colspan="3"></td><td colspan="2">70 </td><td>%</td><td colspan="3"></td><td colspan="2">40,308 </td><td></td></tr><tr><td colspan="3">Japan</td><td colspan="2">25,977 </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td>%</td><td colspan="3"></td><td colspan="2">28,482 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td colspan="2">21,418 </td><td></td></tr><tr><td colspan="3">Rest of Asia Pacific</td><td colspan="2">29,375 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td>%</td><td colspan="3"></td><td colspan="2">26,356 </td><td></td><td colspan="3"></td><td colspan="2">35 </td><td>%</td><td colspan="3"></td><td colspan="2">19,593 </td><td></td></tr><tr><td colspan="3">Total net sales</td><td>$</td><td>394,328 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td>365,817 </td><td></td><td colspan="3"></td><td colspan="2">33 </td><td>%</td><td colspan="3"></td><td>$</td><td>274,515 </td><td></td></tr></table> Americas Americas net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Services and Mac. Europe Europe net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The weakness in foreign currencies relative to the U.S. dollar had a net unfavorable year-over-year impact on Europe net sales during 2022. Greater China Greater China net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone and Services. The strength of the renminbi relative to the U.S. dollar had a favorable year-over-year impact on Greater China net sales during 2022. Japan Japan net sales decreased during 2022 compared to 2021 due to the weakness of the yen relative to the U.S. dollar. Rest of Asia Pacific Rest of Asia Pacific net sales increased during 2022 compared to 2021 due primarily to higher net sales of iPhone, Mac and Services. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable year-over-year impact on Rest of Asia Pacific net sales during 2022. Apple Inc. | 2022 Form 10-K | 22
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Compare the year-over-year changes in net income for American Express and Discover Financial Services from 2021 to 2023.
From 2021 to 2022, American Express's net income decreased from $8,060 million to $7,514 million, a decline of approximately 6.8%. In contrast, Discover Financial Services saw a more significant decrease in net income from $5,422 million in 2021 to $4,374 million in 2022, a decline of about 19.3%. From 2022 to 2023, American Express's net income increased from $7,514 million to $8,374 million, an increase of approximately 11.4%. On the other hand, Discover Financial Services experienced a substantial decline in net income from $4,374 million in 2022 to $2,940 million in 2023, a decrease of about 32.8%. Overall, American Express showed a recovery in net income in 2023, while Discover Financial Services faced a significant decline in profitability.
Comparison
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com032
Compare the provisions for credit losses for American Express and Discover Financial Services for the years 2021, 2022, and 2023.
For the year 2021, American Express reported a total provision for credit losses of $(1,419) million, indicating a net release of credit loss reserves. In contrast, Discover Financial Services reported a provision for credit losses of $218 million in the same year. In 2022, American Express's provision for credit losses increased to $2,182 million, while Discover Financial Services reported a provision of $2,359 million. In 2023, American Express's provision for credit losses further increased to $4,923 million, whereas Discover Financial Services reported a significantly higher provision of $6,018 million.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com033
Compare the revenue generated from non-interest sources by American Express and Discover Financial Services for the years 2021, 2022, and 2023.
For American Express, the revenue generated from non-interest sources in 2021 was $34,630 million, which increased to $42,967 million in 2022, and further to $47,381 million in 2023. This indicates a consistent growth in non-interest revenue over the three years. The primary components of non-interest revenue for American Express include discount revenue, net card fees, service fees, and other revenue, and processed revenue. In contrast, Discover Financial Services reported other income (which includes non-interest revenue) of $2,534 million in 2021, which decreased to $2,294 million in 2022, and then increased to $2,761 million in 2023. The primary components of other income for Discover Financial Services include discount and interchange revenue, protection products revenue, loan fee income, transaction processing revenue, and other miscellaneous revenue items. Comparing the two companies, American Express consistently generated significantly higher non-interest revenue compared to Discover Financial Services over the three years. American Express's non-interest revenue showed consistent growth, while Discover Financial Services experienced a decline in 2022 before recovering in 2023. The higher non-interest revenue for American Express indicates a stronger reliance on fee-based income and diversified revenue streams compared to Discover Financial Services.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com034
Compare the interest income generated by American Express and Discover Financial Services for the years 2021, 2022, and 2023.
For American Express, the interest income generated in 2021 was $9,033 million, which increased to $12,658 million in 2022, and further to $19,983 million in 2023. This indicates a significant growth in interest income over the three years. The primary components of interest income for American Express include interest on loans, interest and dividends on investment securities, and deposits with banks and other sources. In contrast, Discover Financial Services reported total interest income of $10,651 million in 2021, which increased to $12,864 million in 2022, and further to $17,845 million in 2023. The primary components of interest income for Discover Financial Services include interest on credit card loans, other loans, investment securities, and other interest income. Comparing the two companies, both American Express and Discover Financial Services experienced significant growth in interest income over the three years. However, American Express showed a more substantial increase in interest income, particularly in 2023, where it reported $19,983 million compared to Discover Financial Services' $17,845 million. The higher interest income for American Express indicates a stronger performance in generating interest-based revenue compared to Discover Financial Services.
Comparison
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0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com035
How did the discount revenue segment perform for American Express from 2021 to 2023, and how does this compare to Discover Financial Services' discount and interchange revenue over the same period?
For American Express, the discount revenue segment showed significant growth from $24,563 million in 2021 to $30,739 million in 2022, and further to $33,416 million in 2023. This indicates a strong upward trend in discount revenue, reflecting increased transaction volumes or higher discount rates. In comparison, Discover Financial Services' discount and interchange revenue grew from $1,188 million in 2021 to $1,380 million in 2022, and to $1,447 million in 2023. While Discover also experienced growth in this segment, the absolute figures and growth rates are much lower compared to American Express. This comparison highlights that American Express has a significantly larger and faster-growing discount revenue segment, indicating a stronger performance in this area.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com036
Compare the net card fees segment for American Express with Discover Financial Services' loan fee income from 2021 to 2023. What trends can be observed?
American Express's net card fees increased from $5,195 million in 2021 to $6,070 million in 2022, and further to $7,255 million in 2023. This consistent growth indicates a strong and expanding card fee segment, likely driven by an increase in card memberships or higher fees. On the other hand, Discover Financial Services' loan fee income grew from $464 million in 2021 to $632 million in 2022, and to $763 million in 2023. While Discover also shows growth in this segment, the absolute figures are significantly lower than those of American Express. The trend indicates that American Express has a more substantial and rapidly growing net card fees segment compared to Discover's loan fee income, reflecting a stronger performance in generating revenue from card-related fees.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com037
Analyze the service fees and other revenue segment for American Express and compare it with Discover Financial Services' other income from 2021 to 2023. What differences are evident?
American Express's service fees and other revenue increased from $3,316 million in 2021 to $4,521 million in 2022, and to $5,005 million in 2023. This steady growth indicates a robust performance in generating service fees and other related revenues. In comparison, Discover Financial Services' other income grew from $66 million in 2021 to $75 million in 2022, and to $85 million in 2023. Although Discover also experienced growth, the absolute figures are much lower than those of American Express. The comparison reveals that American Express has a significantly larger and faster-growing service fees and other revenue segment, indicating a stronger ability to generate diverse revenue streams from services and other activities.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com038
How did the earnings per share (EPS) for American Express and Discover Financial Services change from 2022 to 2023?
In 2023, American Express reported basic earnings per share (EPS) of $11.23 and diluted EPS of $11.21, which were increases from the basic EPS of $9.86 and diluted EPS of $9.85 reported in 2022. This represents a year-over-year increase of approximately 13.9% (or $1.37 for basic EPS and $1.36 for diluted EPS) for both basic and diluted EPS. Discover Financial Services reported basic EPS of $11.27 and diluted EPS of $11.26 in 2023, which were decreases from the basic EPS of $15.45 and diluted EPS of $15.44 reported in 2022. This represents a year-over-year decline of approximately 27.0% or -$4.18 for both basic and diluted EPS. While American Express experienced an increase in EPS, Discover Financial Services saw a significant decline in EPS from 2022 to 2023.
Comparison
94;86
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86-
q_com039
How do the total deposits of American Express and Discover Financial Services compare as of December 31, 2023?
As of December 31, 2023, American Express reported total customer deposits of $129,144 million. Discover Financial Services reported total deposits of $108,931 million. American Express has higher total deposits compared to Discover Financial Services, indicating a larger base of customer deposits.
Comparison
96;85
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85-
CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85-
CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85-
q_com040
Compare the net loan receivables of American Express and Discover Financial Services as of December 31, 2023.
As of December 31, 2023, American Express reported card member loans of $1,25,995 million, reserves for credit losses of $5,118 million, resulting in net loan receivables of $120,877 million. Discover Financial Services reported loan receivables of $128,409 million, less allowance for credit losses of $9,283 million, resulting in net loan receivables of $119,126 million. Discover Financial Services has slightly higher net loan receivables compared to American Express, indicating a larger loan portfolio.
Comparison
96;85
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85-
CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85-
CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85-
q_com041
Compare the net cash provided by operating activities of American Express and Discover Financial Services for the year 2023.
In 2023, American Express reported net cash provided by operating activities of $18,559 million. Discover Financial Services reported net cash provided by operating activities of $8,563 million. American Express has significantly higher net cash provided by operating activities compared to Discover Financial Services, indicating stronger cash flow generation from its core operations.
Comparison
97;89
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
q_com042
How do the net cash provided by financing activities for American Express and Discover Financial Services compare for the year 2023?
In 2023, American Express reported net cash provided by financing activities of $18,379 million, whereas Discover Financial Services reported net cash provided by financing activities of $15,759 million.
Comparison
97;89
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
q_com043
Compare the net cash used in investing activities for American Express and Discover Financial Services for the year 2023.
In 2023, American Express reported net cash used in investing activities of $24,433 million, while Discover Financial Services reported net cash used in investing activities of $21,491 million.
Comparison
97;89
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
q_com044
Compare the total revenues net of interest expense after provisions for credit losses for American Express and Discover Financial Services for the year 2023.
In 2023, American Express reported total revenues net of interest expense after provisions for credit losses of $55,592 million, while Discover Financial Services reported net interest income after provision for credit losses of $7,081 million. American Express had significantly higher total revenues net of interest expense after provisions for credit losses compared to Discover Financial Services.
Comparison
94,95,96,97,98;85,86,87,88,89
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 95: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:-----|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | Year Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 3 | Other comprehensive income (loss): | | | | | | | | | | | 4 | Net unrealized debt securities gains (losses), net of tax | | | | (87) | | | (42) | | | | 5 | Foreign currency translation adjustments, net of hedges and tax | | | | (230) | | | (163) | | | | 6 | Net unrealized pension and other postretirement benefits, net of tax | 37 | | | 52 | | | 155 | | | | 7 | Other comprehensive income (loss) | 138 | | | (265) | | | (50) | | | | 8 | Comprehensive income | $ | 8,512 | | | $ | 7,249 | | $ | 8,010 | See Notes to Consolidated Financial Statements. 95 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 98: CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------------|:--------|:-------|:-----------------|:---|:--------------|:---|:---------------------------|:----------------------------------------------|:--------|:------------------|:--------|:-------|:--------|:---|:--------|:---|:-------| | 1 | (Millions, except per share amounts) | Total | | Preferred Shares | | Common Shares | | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | | Retained Earnings | | | | | | | | | 2 | Balances as of December 31, 2020 | $ | 22,984 | | | $ | - | | $ | 161 | | $ | 11,881 | | $ | (2,895) | $ | 13,837 | | 4 | Net income | 8,060 | | | - | | | - | | - | | - | | 8,060 | | | | | | 5 | Other comprehensive loss | (50) | | | - | | | - | | - | | (50) | | - | | | | | | 6 | Preferred shares issued | 1,584 | | | - | | | - | | 1,584 | | - | | - | | | | | | 7 | Redemption of preferred shares | (1,600) | | | - | | | - | | (1,584) | | - | | (16) | | | | | | 8 | Repurchase of common shares | (7,598) | | | - | | | (9) | | (631) | | - | | (6,958) | | | | | | 9 | Other changes, primarily employee plans | 227 | | | - | | | 1 | | 245 | | - | | (19) | | | | | | 10 | Cash dividends declared preferred Series B, $36,419.41 per share | (27) | | | - | | | - | | - | | - | | (27) | | | | | | 11 | Cash dividends declared preferred Series C, $26,317.47 per share | (23) | | | - | | | - | | - | | - | | (23) | | | | | | 12 | Cash dividends declared preferred Series D, $13,213.89 per share | (21) | | | - | | | - | | - | | - | | (21) | | | | | | 13 | Cash dividends declared common, $1.72 per share | (1,359) | | | - | | | - | | - | | - | | (1,359) | | | | | | 14 | Balances as of December 31, 2021 | 22,177 | | | - | | | 153 | | 11,495 | | (2,945) | | 13,474 | | | | | | 16 | Net income | 7,514 | | | - | | | - | | - | | - | | 7,514 | | | | | | 17 | Other comprehensive loss | (265) | | | - | | | - | | - | | (265) | | - | | | | | | 20 | Repurchase of common shares | (3,332) | | | - | | | (4) | | (302) | | - | | (3,026) | | | | | | 21 | Other changes, primarily employee plans | 242 | | | - | | | - | | 300 | | - | | (58) | | | | | | 24 | Cash dividends declared preferred Series D, $35,993.05 per share | (57) | | | - | | | - | | - | | - | | (57) | | | | | | 25 | Cash dividends declared common, $2.08 per share | (1,568) | | | - | | | - | | - | | - | | (1,568) | | | | | | 26 | Balances as of December 31, 2022 | 24,711 | | | - | | | 149 | | 11,493 | | (3,210) | | 16,279 | | | | | | 27 | Net income | 8,374 | | | - | | | - | | - | | - | | 8,374 | | | | | | 28 | Other comprehensive income | 138 | | | - | | | - | | - | | 138 | | - | | | | | | 31 | Repurchase of common shares | (3,519) | | | - | | | (4) | | (334) | | - | | (3,181) | | | | | | 32 | Other changes, primarily employee plans | 181 | | | - | | | - | | 213 | | - | | (32) | | | | | | 35 | Cash dividends declared preferred Series D, $35,993.05 per share | (58) | | | - | | | - | | - | | - | | (58) | | | | | | 36 | Cash dividends declared common, $2.40 per share | (1,770) | | | - | | | - | | - | | - | | (1,770) | | | | | | 37 | Balances as of December 31, 2023 | $ | 28,057 | | | $ | - | | $ | 145 | | $ | 11,372 | | $ | (3,072) | $ | 19,612 | See Notes to Consolidated Financial Statements. 98 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 87: DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 4 | Other comprehensive income (loss), net of tax | | | | | | | | | | | 5 | Unrealized gains (losses) on available-for-sale investment securities, net of tax | 99 | | | (250) | | | (170) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 6 | | | (5) | | | 3 | | | | 7 | Unrealized pension and post-retirement plan gains, net of tax | 9 | | | 10 | | | 28 | | | | 8 | Other comprehensive income (loss) | 114 | | | (245) | | | (139) | | | | 9 | Comprehensive income | $ | 3,054 | | | $ | 4,129 | | $ | 5,283 | See Notes to the Consolidated Financial Statements. -87- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 88: DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:------|:-------------------------|:-----------------|:--------|:----------------------------------------------|:---|:--------------|:---|:-------------------------|:---|:-------|:------|:-------|:---------|:---|:------|:--------|:---|:---------|:---|:-------| | 1 | | Preferred Stock | Common Stock | | AdditionalPaid-inCapital | RetainedEarnings | | Accumulated Other Comprehensive Income (Loss) | | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | 4 | Balance at December 31, 2020 | 11 | | $ | 1,056 | | 567,898 | | | $ | 6 | | $ | 4,257 | $ | 19,754 | | $ | 45 | | $ | (14,435) | $ | 10,683 | | 5 | Net income | - | | - | | - | | | - | | | - | | 5,422 | - | | - | | | 5,422 | | | | | | 6 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (139) | | - | | | (139) | | | | | | 7 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,260) | | | (2,260) | | | | | | 8 | Common stock issued under employee benefit plans | - | | - | | 88 | | | - | | | 9 | | - | - | | - | | | 9 | | | | | | 9 | Common stock issued and stock-based compensation expense | - | | - | | 845 | | | - | | | 103 | | - | - | | - | | | 103 | | | | | | 11 | Dividends - common stock ($1.88 per share) | - | | - | | - | | | - | | | - | | (569) | - | | - | | | (569) | | | | | | 12 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 13 | Dividends - Series D preferred stock ($7,674 per share) | - | | - | | - | | | - | | | - | | (38) | - | | - | | | (38) | | | | | | 14 | Balance at December 31, 2021 | 11 | | 1,056 | | 568,831 | | | 6 | | | 4,369 | | 24,538 | (94) | | (16,695) | | | 13,180 | | | | | | 16 | Net income | - | | - | | - | | | - | | | - | | 4,374 | - | | - | | | 4,374 | | | | | | 17 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (245) | | - | | | (245) | | | | | | 18 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,359) | | | (2,359) | | | | | | 19 | Common stock issued under employee benefit plans | - | | - | | 107 | | | - | | | 10 | | - | - | | - | | | 10 | | | | | | 20 | Common stock issued and stock-based compensation expense | - | | - | | 751 | | | - | | | 89 | | - | - | | - | | | 89 | | | | | | 22 | Dividends - common stock ($2.30 per share) | - | | - | | - | | | - | | | - | | (643) | - | | - | | | (643) | | | | | | 23 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 24 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 25 | Balance at December 31, 2022 | 11 | | 1,056 | | 569,689 | | | 6 | | | 4,468 | | 28,207 | (339) | | (19,054) | | | 14,344 | | | | | | 26 | Cumulative effect of ASU No. 2022-02 adoption | - | | - | | - | | | - | | | - | | 52 | - | | - | | | 52 | | | | | | 27 | Net income | - | | - | | - | | | - | | | - | | 2,940 | - | | - | | | 2,940 | | | | | | 28 | Other comprehensive income | - | | - | | - | | | - | | | - | | - | 114 | | - | | | 114 | | | | | | 29 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (1,956) | | | (1,956) | | | | | | 30 | Common stock issued under employee benefit plans | - | | - | | 118 | | | - | | | 11 | | - | - | | - | | | 11 | | | | | | 31 | Common stock issued and stock-based compensation expense | - | | - | | 1,031 | | | - | | | 74 | | - | - | | - | | | 74 | | | | | | 33 | Dividends - common stock ($2.70 per share) | - | | - | | - | | | - | | | - | | (689) | - | | - | | | (689) | | | | | | 34 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 35 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 36 | Balance at December 31, 2023 | 11 | | $ | 1,056 | | 570,838 | | | $ | 6 | | $ | 4,553 | $ | 30,448 | | $ | (225) | | $ | (21,010) | $ | 14,828 | See Notes to the Consolidated Financial Statements. -88- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:-----|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | Year Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 3 | Other comprehensive income (loss): | | | | | | | | | | | 4 | Net unrealized debt securities gains (losses), net of tax | | | | (87) | | | (42) | | | | 5 | Foreign currency translation adjustments, net of hedges and tax | | | | (230) | | | (163) | | | | 6 | Net unrealized pension and other postretirement benefits, net of tax | 37 | | | 52 | | | 155 | | | | 7 | Other comprehensive income (loss) | 138 | | | (265) | | | (50) | | | | 8 | Comprehensive income | $ | 8,512 | | | $ | 7,249 | | $ | 8,010 | See Notes to Consolidated Financial Statements. 95 , CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------------|:--------|:-------|:-----------------|:---|:--------------|:---|:---------------------------|:----------------------------------------------|:--------|:------------------|:--------|:-------|:--------|:---|:--------|:---|:-------| | 1 | (Millions, except per share amounts) | Total | | Preferred Shares | | Common Shares | | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | | Retained Earnings | | | | | | | | | 2 | Balances as of December 31, 2020 | $ | 22,984 | | | $ | - | | $ | 161 | | $ | 11,881 | | $ | (2,895) | $ | 13,837 | | 4 | Net income | 8,060 | | | - | | | - | | - | | - | | 8,060 | | | | | | 5 | Other comprehensive loss | (50) | | | - | | | - | | - | | (50) | | - | | | | | | 6 | Preferred shares issued | 1,584 | | | - | | | - | | 1,584 | | - | | - | | | | | | 7 | Redemption of preferred shares | (1,600) | | | - | | | - | | (1,584) | | - | | (16) | | | | | | 8 | Repurchase of common shares | (7,598) | | | - | | | (9) | | (631) | | - | | (6,958) | | | | | | 9 | Other changes, primarily employee plans | 227 | | | - | | | 1 | | 245 | | - | | (19) | | | | | | 10 | Cash dividends declared preferred Series B, $36,419.41 per share | (27) | | | - | | | - | | - | | - | | (27) | | | | | | 11 | Cash dividends declared preferred Series C, $26,317.47 per share | (23) | | | - | | | - | | - | | - | | (23) | | | | | | 12 | Cash dividends declared preferred Series D, $13,213.89 per share | (21) | | | - | | | - | | - | | - | | (21) | | | | | | 13 | Cash dividends declared common, $1.72 per share | (1,359) | | | - | | | - | | - | | - | | (1,359) | | | | | | 14 | Balances as of December 31, 2021 | 22,177 | | | - | | | 153 | | 11,495 | | (2,945) | | 13,474 | | | | | | 16 | Net income | 7,514 | | | - | | | - | | - | | - | | 7,514 | | | | | | 17 | Other comprehensive loss | (265) | | | - | | | - | | - | | (265) | | - | | | | | | 20 | Repurchase of common shares | (3,332) | | | - | | | (4) | | (302) | | - | | (3,026) | | | | | | 21 | Other changes, primarily employee plans | 242 | | | - | | | - | | 300 | | - | | (58) | | | | | | 24 | Cash dividends declared preferred Series D, $35,993.05 per share | (57) | | | - | | | - | | - | | - | | (57) | | | | | | 25 | Cash dividends declared common, $2.08 per share | (1,568) | | | - | | | - | | - | | - | | (1,568) | | | | | | 26 | Balances as of December 31, 2022 | 24,711 | | | - | | | 149 | | 11,493 | | (3,210) | | 16,279 | | | | | | 27 | Net income | 8,374 | | | - | | | - | | - | | - | | 8,374 | | | | | | 28 | Other comprehensive income | 138 | | | - | | | - | | - | | 138 | | - | | | | | | 31 | Repurchase of common shares | (3,519) | | | - | | | (4) | | (334) | | - | | (3,181) | | | | | | 32 | Other changes, primarily employee plans | 181 | | | - | | | - | | 213 | | - | | (32) | | | | | | 35 | Cash dividends declared preferred Series D, $35,993.05 per share | (58) | | | - | | | - | | - | | - | | (58) | | | | | | 36 | Cash dividends declared common, $2.40 per share | (1,770) | | | - | | | - | | - | | - | | (1,770) | | | | | | 37 | Balances as of December 31, 2023 | $ | 28,057 | | | $ | - | | $ | 145 | | $ | 11,372 | | $ | (3,072) | $ | 19,612 | See Notes to Consolidated Financial Statements. 98 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 4 | Other comprehensive income (loss), net of tax | | | | | | | | | | | 5 | Unrealized gains (losses) on available-for-sale investment securities, net of tax | 99 | | | (250) | | | (170) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 6 | | | (5) | | | 3 | | | | 7 | Unrealized pension and post-retirement plan gains, net of tax | 9 | | | 10 | | | 28 | | | | 8 | Other comprehensive income (loss) | 114 | | | (245) | | | (139) | | | | 9 | Comprehensive income | $ | 3,054 | | | $ | 4,129 | | $ | 5,283 | See Notes to the Consolidated Financial Statements. -87- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:------|:-------------------------|:-----------------|:--------|:----------------------------------------------|:---|:--------------|:---|:-------------------------|:---|:-------|:------|:-------|:---------|:---|:------|:--------|:---|:---------|:---|:-------| | 1 | | Preferred Stock | Common Stock | | AdditionalPaid-inCapital | RetainedEarnings | | Accumulated Other Comprehensive Income (Loss) | | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | 4 | Balance at December 31, 2020 | 11 | | $ | 1,056 | | 567,898 | | | $ | 6 | | $ | 4,257 | $ | 19,754 | | $ | 45 | | $ | (14,435) | $ | 10,683 | | 5 | Net income | - | | - | | - | | | - | | | - | | 5,422 | - | | - | | | 5,422 | | | | | | 6 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (139) | | - | | | (139) | | | | | | 7 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,260) | | | (2,260) | | | | | | 8 | Common stock issued under employee benefit plans | - | | - | | 88 | | | - | | | 9 | | - | - | | - | | | 9 | | | | | | 9 | Common stock issued and stock-based compensation expense | - | | - | | 845 | | | - | | | 103 | | - | - | | - | | | 103 | | | | | | 11 | Dividends - common stock ($1.88 per share) | - | | - | | - | | | - | | | - | | (569) | - | | - | | | (569) | | | | | | 12 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 13 | Dividends - Series D preferred stock ($7,674 per share) | - | | - | | - | | | - | | | - | | (38) | - | | - | | | (38) | | | | | | 14 | Balance at December 31, 2021 | 11 | | 1,056 | | 568,831 | | | 6 | | | 4,369 | | 24,538 | (94) | | (16,695) | | | 13,180 | | | | | | 16 | Net income | - | | - | | - | | | - | | | - | | 4,374 | - | | - | | | 4,374 | | | | | | 17 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (245) | | - | | | (245) | | | | | | 18 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,359) | | | (2,359) | | | | | | 19 | Common stock issued under employee benefit plans | - | | - | | 107 | | | - | | | 10 | | - | - | | - | | | 10 | | | | | | 20 | Common stock issued and stock-based compensation expense | - | | - | | 751 | | | - | | | 89 | | - | - | | - | | | 89 | | | | | | 22 | Dividends - common stock ($2.30 per share) | - | | - | | - | | | - | | | - | | (643) | - | | - | | | (643) | | | | | | 23 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 24 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 25 | Balance at December 31, 2022 | 11 | | 1,056 | | 569,689 | | | 6 | | | 4,468 | | 28,207 | (339) | | (19,054) | | | 14,344 | | | | | | 26 | Cumulative effect of ASU No. 2022-02 adoption | - | | - | | - | | | - | | | - | | 52 | - | | - | | | 52 | | | | | | 27 | Net income | - | | - | | - | | | - | | | - | | 2,940 | - | | - | | | 2,940 | | | | | | 28 | Other comprehensive income | - | | - | | - | | | - | | | - | | - | 114 | | - | | | 114 | | | | | | 29 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (1,956) | | | (1,956) | | | | | | 30 | Common stock issued under employee benefit plans | - | | - | | 118 | | | - | | | 11 | | - | - | | - | | | 11 | | | | | | 31 | Common stock issued and stock-based compensation expense | - | | - | | 1,031 | | | - | | | 74 | | - | - | | - | | | 74 | | | | | | 33 | Dividends - common stock ($2.70 per share) | - | | - | | - | | | - | | | - | | (689) | - | | - | | | (689) | | | | | | 34 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 35 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 36 | Balance at December 31, 2023 | 11 | | $ | 1,056 | | 570,838 | | | $ | 6 | | $ | 4,553 | $ | 30,448 | | $ | (225) | | $ | (21,010) | $ | 14,828 | See Notes to the Consolidated Financial Statements. -88- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 95: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(87)</td><td></td><td colspan="3"></td><td colspan="2">(42)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(230)</td><td></td><td colspan="3"></td><td colspan="2">(163)</td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">37 </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">155 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>8,512 </td><td></td><td colspan="3"></td><td>$</td><td>7,249 </td><td></td><td colspan="3"></td><td>$</td><td>8,010 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 95 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 98: CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">Total</td><td colspan="3"></td><td colspan="3">Preferred Shares</td><td colspan="3"></td><td colspan="3">Common Shares</td><td colspan="3"></td><td colspan="3">Additional Paid-in Capital</td><td colspan="3"></td><td colspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3">Retained Earnings</td></tr><tr><td colspan="3">Balances as of December 31, 2020</td><td colspan="3"></td><td>$</td><td>22,984 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>161 </td><td></td><td colspan="3"></td><td>$</td><td>11,881 </td><td></td><td colspan="3"></td><td>$</td><td>(2,895)</td><td></td><td colspan="3"></td><td>$</td><td>13,837 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,060 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Preferred shares issued</td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Redemption of preferred shares</td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,584)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(7,598)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(631)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(6,958)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">245 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series B, $36,419.41 per share</td><td colspan="3"></td><td colspan="2">(27)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series C, $26,317.47 per share</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(23)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $13,213.89 per share</td><td colspan="3"></td><td colspan="2">(21)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(21)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $1.72 per share</td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2021</td><td colspan="3"></td><td colspan="2">22,177 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">11,495 </td><td></td><td colspan="3"></td><td colspan="2">(2,945)</td><td></td><td colspan="3"></td><td colspan="2">13,474 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">7,514 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">7,514 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,332)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(302)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,026)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(57)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.08 per share</td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2022</td><td colspan="3"></td><td colspan="2">24,711 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,519)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(334)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,181)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">181 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">213 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(32)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(58)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.40 per share</td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2023</td><td colspan="3"></td><td>$</td><td>28,057 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>145 </td><td></td><td colspan="3"></td><td>$</td><td>11,372 </td><td></td><td colspan="3"></td><td>$</td><td>(3,072)</td><td></td><td colspan="3"></td><td>$</td><td>19,612 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 98 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 87: DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss), net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized gains (losses) on available-for-sale investment securities, net of tax</td><td colspan="2">99 </td><td></td><td colspan="3"></td><td colspan="2">(250)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Unrealized pension and post-retirement plan gains, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,054 </td><td></td><td colspan="3"></td><td>$</td><td>4,129 </td><td></td><td colspan="3"></td><td>$</td><td>5,283 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -87- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 88: DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9" rowspan="2">Preferred Stock</td><td colspan="3"></td><td colspan="9" rowspan="2">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at December 31, 2020</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">567,898 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,257 </td><td></td><td colspan="3"></td><td>$</td><td>19,754 </td><td></td><td colspan="3"></td><td>$</td><td>45 </td><td></td><td colspan="3"></td><td>$</td><td>(14,435)</td><td></td><td colspan="3"></td><td>$</td><td>10,683 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">88 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">845 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($1.88 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($7,674 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2021</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">568,831 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,369 </td><td></td><td colspan="3"></td><td colspan="2">24,538 </td><td></td><td colspan="3"></td><td colspan="2">(94)</td><td></td><td colspan="3"></td><td colspan="2">(16,695)</td><td></td><td colspan="3"></td><td colspan="2">13,180 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.30 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">569,689 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Cumulative effect of ASU No. 2022-02 adoption</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,031 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,838 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,553 </td><td></td><td colspan="3"></td><td>$</td><td>30,448 </td><td></td><td colspan="3"></td><td>$</td><td>(225)</td><td></td><td colspan="3"></td><td>$</td><td>(21,010)</td><td></td><td colspan="3"></td><td>$</td><td>14,828 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -88- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(87)</td><td></td><td colspan="3"></td><td colspan="2">(42)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(230)</td><td></td><td colspan="3"></td><td colspan="2">(163)</td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">37 </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">155 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>8,512 </td><td></td><td colspan="3"></td><td>$</td><td>7,249 </td><td></td><td colspan="3"></td><td>$</td><td>8,010 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 95 , CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">Total</td><td colspan="3"></td><td colspan="3">Preferred Shares</td><td colspan="3"></td><td colspan="3">Common Shares</td><td colspan="3"></td><td colspan="3">Additional Paid-in Capital</td><td colspan="3"></td><td colspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3">Retained Earnings</td></tr><tr><td colspan="3">Balances as of December 31, 2020</td><td colspan="3"></td><td>$</td><td>22,984 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>161 </td><td></td><td colspan="3"></td><td>$</td><td>11,881 </td><td></td><td colspan="3"></td><td>$</td><td>(2,895)</td><td></td><td colspan="3"></td><td>$</td><td>13,837 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,060 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Preferred shares issued</td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Redemption of preferred shares</td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,584)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(7,598)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(631)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(6,958)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">245 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series B, $36,419.41 per share</td><td colspan="3"></td><td colspan="2">(27)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series C, $26,317.47 per share</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(23)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $13,213.89 per share</td><td colspan="3"></td><td colspan="2">(21)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(21)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $1.72 per share</td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2021</td><td colspan="3"></td><td colspan="2">22,177 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">11,495 </td><td></td><td colspan="3"></td><td colspan="2">(2,945)</td><td></td><td colspan="3"></td><td colspan="2">13,474 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">7,514 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">7,514 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,332)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(302)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,026)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(57)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.08 per share</td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2022</td><td colspan="3"></td><td colspan="2">24,711 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,519)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(334)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,181)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">181 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">213 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(32)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(58)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.40 per share</td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2023</td><td colspan="3"></td><td>$</td><td>28,057 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>145 </td><td></td><td colspan="3"></td><td>$</td><td>11,372 </td><td></td><td colspan="3"></td><td>$</td><td>(3,072)</td><td></td><td colspan="3"></td><td>$</td><td>19,612 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 98 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss), net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized gains (losses) on available-for-sale investment securities, net of tax</td><td colspan="2">99 </td><td></td><td colspan="3"></td><td colspan="2">(250)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Unrealized pension and post-retirement plan gains, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,054 </td><td></td><td colspan="3"></td><td>$</td><td>4,129 </td><td></td><td colspan="3"></td><td>$</td><td>5,283 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -87- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9" rowspan="2">Preferred Stock</td><td colspan="3"></td><td colspan="9" rowspan="2">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at December 31, 2020</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">567,898 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,257 </td><td></td><td colspan="3"></td><td>$</td><td>19,754 </td><td></td><td colspan="3"></td><td>$</td><td>45 </td><td></td><td colspan="3"></td><td>$</td><td>(14,435)</td><td></td><td colspan="3"></td><td>$</td><td>10,683 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">88 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">845 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($1.88 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($7,674 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2021</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">568,831 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,369 </td><td></td><td colspan="3"></td><td colspan="2">24,538 </td><td></td><td colspan="3"></td><td colspan="2">(94)</td><td></td><td colspan="3"></td><td colspan="2">(16,695)</td><td></td><td colspan="3"></td><td colspan="2">13,180 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.30 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">569,689 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Cumulative effect of ASU No. 2022-02 adoption</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,031 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,838 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,553 </td><td></td><td colspan="3"></td><td>$</td><td>30,448 </td><td></td><td colspan="3"></td><td>$</td><td>(225)</td><td></td><td colspan="3"></td><td>$</td><td>(21,010)</td><td></td><td colspan="3"></td><td>$</td><td>14,828 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -88- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
q_com045
Compare the liquidity ratios of Fortinet Inc. and Rapid7 Inc. for the year 2023.
Liquidity ratios are crucial for assessing a company's ability to meet its short-term obligations. The current ratio, which is calculated as current assets divided by current liabilities, is a common measure of liquidity.For Fortinet Inc.:- Current Assets (2023): $4,428.3 million, Current Liabilities (2023): $3,719.0 million--> Current Ratio (2023): 4,428.3 / 3,719.0 = 1.19. Similarly Current Ratio for Rapid7 (2023): 634,450 / 569,792 = 1.11. Comparing the two, Fortinet Inc. has a slightly higher current ratio of 1.19 compared to Rapid7 Inc.'s 1.11
Comparison
71;61
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61
q_com046
How do the total revenues of Fortinet Inc. and Rapid7 Inc. compare for the year 2023?
In 2023, Fortinet Inc. reported total revenue of $5.30 billion, which represents a 20% increase from $4.42 billion in 2022. On the other hand, Rapid7 Inc. reported total revenue of $777.7 million in 2023, reflecting a 13.5% increase from $685.1 million in 2022. Fortinet's total revenue is significantly higher than Rapid7's revenue.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com047
Compare the geographic revenue distribution of Fortinet Inc. and Rapid7 Inc. for 2023.
In 2023, Fortinet Inc. reported that the Americas region contributed 41% of total revenue, the EMEA region contributed 39%, and the APAC region contributed 20%. Rapid7 Inc. reported that the increase in total revenue in 2023 compared to 2022 was comprised of $65.6 million generated from sales in North America and $27.0 million generated from sales from the rest of the world. While Fortinet provides a detailed geographic breakdown, Rapid7's data is less specific, but it indicates a significant portion of revenue coming from North America.
Comparison
61;92
0001262039-24-000014;0001560327-24-000021
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: 2023 and 2022 Revenue | | | | | | | | | | | | | | | | | | |---:|:----------------------------------|:------------------------|:------------|:-------|:----|:------------|:--------|:-------|:--------|:---------|:----|:------|:---|:------|:---|:---| | 1 | | Year Ended December 31, | | | | | | | | | | | | | | | | 2 | 2023 | | 2022 | | | | | | | | | | | | | | | 3 | Amount | | % ofRevenue | Amount | | % ofRevenue | | Change | | % Change | | | | | | | | 5 | (in millions, except percentages) | | | | | | | | | | | | | | | | | 6 | Revenue: | | | | | | | | | | | | | | | | | 7 | Product | $ | 1,927.3 | | 36 | % | | $ | 1,780.5 | | 40 | % | $ | 146.8 | 8 | % | | 8 | Service | 3,377.5 | | 64 | | | 2,636.9 | | | 60 | | 740.6 | | 28 | | | | 9 | Total revenue | $ | 5,304.8 | | 100 | % | | $ | 4,417.4 | | 100 | % | $ | 887.4 | 20 | % | | 10 | Revenue by geography: | | | | | | | | | | | | | | | | | 11 | Americas | $ | 2,175.2 | | 41 | % | | $ | 1,785.0 | | 41 | % | $ | 390.2 | 22 | % | | 12 | EMEA | 2,072.9 | | 39 | | | 1,691.8 | | | 38 | | 381.1 | | 23 | | | | 13 | APAC | 1,056.7 | | 20 | | | 940.6 | | | 21 | | 116.1 | | 12 | | | | 14 | Total revenue | $ | 5,304.8 | | 100 | % | | $ | 4,417.4 | | 100 | % | $ | 887.4 | 20 | % | Total revenue increased $887.4 million, or 20%, in 2023 compared to 2022. We continued to experience large organic revenue growth (i.e., revenue growth excluding attribution from recent acquisitions) with diversification of revenue geographically, and across both customer and industry segments. Revenue from all regions grew, with the Americas contributing the largest portion of the increase on an absolute dollar basis and EMEA, contributing the largest portion of the increase on a percentage basis. Product revenue increased $146.8 million, or 8%, in 2023 compared to 2022. Product revenue growth was impacted by an elevated cyber threat landscape, the convergence of security and networking, the impact of certain historical pricing actions, improving supply chain dynamics, and changes in the backlog balance. Product revenue growth rates decreased from 42% in 2022 to 8% in 2023 partially due to overall softening macroeconomic conditions. Service revenue increased $740.6 million, or 28%, in 2023 compared to 2022. Service revenue growth has accelerated over the past three years from 24% in 2021, to 26% in 2022 to 28% in 2023. Compared to 2022, FortiGuard security subscription revenue and other security subscription revenue increased $471.1 million, or 33% and FortiCare, other technical support and other revenues increased $269.5 million, or 22%, in 2023. The increases in service revenue were primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions delivered to on-premise and cloud-based environments. Security subscriptions outpaced technical support growth due to strength in secure networking subscriptions, SecOps and SASE. Of the service revenue recognized in 2023, 67% was included in the deferred revenue balance as of December 31, 2022. Of the service revenue recognized in 2022, 66% was included in the deferred revenue balance as of December 31, 2021. Of the service revenue recognized in each quarter of 2023, from 88% to 89% was included in deferred revenue as of the beginning of the respective quarter. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 92: Table of Contents Net revenues by geographic area presented based upon the location of the customer are as follows: | | | | | | | | | | | | | |---:|:--------------|:------------------------|:---------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | | | (in thousands) | | | | | | | | | | 4 | United States | | $ | 579,025 | | | $ | 515,894 | | $ | 414,856 | | 5 | Other | | 198,682 | | | 169,189 | | | 120,548 | | | | 6 | Total | | $ | 777,707 | | | $ | 685,083 | | $ | 535,404 | Property and equipment, net by geographic area is presented in the table below: | | | | | | | | | |---:|:--------------|:------------------------|:-------|:------------------------|:-------|:---|:-------| | 1 | | As of December 31, 2023 | | As of December 31, 2022 | | | | | 2 | | (in thousands) | | | | | | | 3 | United States | $ | 27,609 | | | $ | 41,570 | | 4 | Other | 12,033 | | | 16,321 | | | | 5 | Total | $ | 39,642 | | | $ | 57,891 | (19) Restructuring On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company's workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the "Restructuring Plan"). The Restructuring Plan included a reduction of the Company's workforce by approximately 16%. In 2023, we incurred $22.2 million of restructuring charges which were recorded within restructuring in the condensed consolidated statements of operations. In addition, we incurred $1.3 million of stock-based compensation expense related to acceleration of share-based awards. As of December 31, 2023, the restructuring liability accrued but not paid totaled $3.8 million, which is included within accrued expenses in the condensed consolidated balance sheets. The execution of the Restructuring Plan was substantially complete as of December 31, 2023 and we expect the remaining restructuring liability to be paid by the end of the first quarter of 2024. Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the fourth quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. In 2023, we permanently closed certain idle office spaces in Plano, Texas, Los Angeles, California and Toronto, Canada, which resulted in an impairment loss of $3.6 million. Refer to Note 12, Leases, for further details on the impairment of long-lived assets. The following table presents the activity of the restructuring liability for the year ended December 31, 2023: | | | | | |---:|:-----------------------------|:------------------------|:------| | 1 | | Restructuring Liability | | | 2 | | (in thousands) | | | 3 | Balance at December 31, 2022 | $ | - | | 4 | Charges | 22,227 | | | 5 | Payments | (18,463) | | | 6 | Balance at December 31, 2023 | $ | 3,764 |
2023 and 2022 Revenue | | | | | | | | | | | | | | | | | | |---:|:----------------------------------|:------------------------|:------------|:-------|:----|:------------|:--------|:-------|:--------|:---------|:----|:------|:---|:------|:---|:---| | 1 | | Year Ended December 31, | | | | | | | | | | | | | | | | 2 | 2023 | | 2022 | | | | | | | | | | | | | | | 3 | Amount | | % ofRevenue | Amount | | % ofRevenue | | Change | | % Change | | | | | | | | 5 | (in millions, except percentages) | | | | | | | | | | | | | | | | | 6 | Revenue: | | | | | | | | | | | | | | | | | 7 | Product | $ | 1,927.3 | | 36 | % | | $ | 1,780.5 | | 40 | % | $ | 146.8 | 8 | % | | 8 | Service | 3,377.5 | | 64 | | | 2,636.9 | | | 60 | | 740.6 | | 28 | | | | 9 | Total revenue | $ | 5,304.8 | | 100 | % | | $ | 4,417.4 | | 100 | % | $ | 887.4 | 20 | % | | 10 | Revenue by geography: | | | | | | | | | | | | | | | | | 11 | Americas | $ | 2,175.2 | | 41 | % | | $ | 1,785.0 | | 41 | % | $ | 390.2 | 22 | % | | 12 | EMEA | 2,072.9 | | 39 | | | 1,691.8 | | | 38 | | 381.1 | | 23 | | | | 13 | APAC | 1,056.7 | | 20 | | | 940.6 | | | 21 | | 116.1 | | 12 | | | | 14 | Total revenue | $ | 5,304.8 | | 100 | % | | $ | 4,417.4 | | 100 | % | $ | 887.4 | 20 | % | Total revenue increased $887.4 million, or 20%, in 2023 compared to 2022. We continued to experience large organic revenue growth (i.e., revenue growth excluding attribution from recent acquisitions) with diversification of revenue geographically, and across both customer and industry segments. Revenue from all regions grew, with the Americas contributing the largest portion of the increase on an absolute dollar basis and EMEA, contributing the largest portion of the increase on a percentage basis. Product revenue increased $146.8 million, or 8%, in 2023 compared to 2022. Product revenue growth was impacted by an elevated cyber threat landscape, the convergence of security and networking, the impact of certain historical pricing actions, improving supply chain dynamics, and changes in the backlog balance. Product revenue growth rates decreased from 42% in 2022 to 8% in 2023 partially due to overall softening macroeconomic conditions. Service revenue increased $740.6 million, or 28%, in 2023 compared to 2022. Service revenue growth has accelerated over the past three years from 24% in 2021, to 26% in 2022 to 28% in 2023. Compared to 2022, FortiGuard security subscription revenue and other security subscription revenue increased $471.1 million, or 33% and FortiCare, other technical support and other revenues increased $269.5 million, or 22%, in 2023. The increases in service revenue were primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions delivered to on-premise and cloud-based environments. Security subscriptions outpaced technical support growth due to strength in secure networking subscriptions, SecOps and SASE. Of the service revenue recognized in 2023, 67% was included in the deferred revenue balance as of December 31, 2022. Of the service revenue recognized in 2022, 66% was included in the deferred revenue balance as of December 31, 2021. Of the service revenue recognized in each quarter of 2023, from 88% to 89% was included in deferred revenue as of the beginning of the respective quarter. 61 , Table of Contents Net revenues by geographic area presented based upon the location of the customer are as follows: | | | | | | | | | | | | | |---:|:--------------|:------------------------|:---------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | | | (in thousands) | | | | | | | | | | 4 | United States | | $ | 579,025 | | | $ | 515,894 | | $ | 414,856 | | 5 | Other | | 198,682 | | | 169,189 | | | 120,548 | | | | 6 | Total | | $ | 777,707 | | | $ | 685,083 | | $ | 535,404 | Property and equipment, net by geographic area is presented in the table below: | | | | | | | | | |---:|:--------------|:------------------------|:-------|:------------------------|:-------|:---|:-------| | 1 | | As of December 31, 2023 | | As of December 31, 2022 | | | | | 2 | | (in thousands) | | | | | | | 3 | United States | $ | 27,609 | | | $ | 41,570 | | 4 | Other | 12,033 | | | 16,321 | | | | 5 | Total | $ | 39,642 | | | $ | 57,891 | (19) Restructuring On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company's workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the "Restructuring Plan"). The Restructuring Plan included a reduction of the Company's workforce by approximately 16%. In 2023, we incurred $22.2 million of restructuring charges which were recorded within restructuring in the condensed consolidated statements of operations. In addition, we incurred $1.3 million of stock-based compensation expense related to acceleration of share-based awards. As of December 31, 2023, the restructuring liability accrued but not paid totaled $3.8 million, which is included within accrued expenses in the condensed consolidated balance sheets. The execution of the Restructuring Plan was substantially complete as of December 31, 2023 and we expect the remaining restructuring liability to be paid by the end of the first quarter of 2024. Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the fourth quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. In 2023, we permanently closed certain idle office spaces in Plano, Texas, Los Angeles, California and Toronto, Canada, which resulted in an impairment loss of $3.6 million. Refer to Note 12, Leases, for further details on the impairment of long-lived assets. The following table presents the activity of the restructuring liability for the year ended December 31, 2023: | | | | | |---:|:-----------------------------|:------------------------|:------| | 1 | | Restructuring Liability | | | 2 | | (in thousands) | | | 3 | Balance at December 31, 2022 | $ | - | | 4 | Charges | 22,227 | | | 5 | Payments | (18,463) | | | 6 | Balance at December 31, 2023 | $ | 3,764 |
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: 2023 and 2022 Revenue <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="5"> </td><td colspan="21">Year Ended December 31, </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="9">2023</td><td colspan="3"></td><td colspan="9">2022</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">% ofRevenue</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">% ofRevenue</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">% Change</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="33">(in millions, except percentages)</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td colspan="2">36 </td><td>%</td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td colspan="2">40 </td><td>%</td><td colspan="3"></td><td>$</td><td>146.8 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td></tr><tr><td colspan="3">Service</td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">60 </td><td></td><td colspan="3"></td><td colspan="2">740.6 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td>$</td><td>5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>887.4 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td>%</td></tr><tr><td colspan="3">Revenue by geography:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Americas</td><td>$</td><td>2,175.2 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td><td colspan="3"></td><td>$</td><td>1,785.0 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td><td colspan="3"></td><td>$</td><td>390.2 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td>%</td></tr><tr><td colspan="3">EMEA</td><td colspan="2">2,072.9 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="2">1,691.8 </td><td></td><td colspan="3"></td><td colspan="2">38 </td><td></td><td colspan="3"></td><td colspan="2">381.1 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td></td></tr><tr><td colspan="3">APAC</td><td colspan="2">1,056.7 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">940.6 </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">116.1 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td>$</td><td>5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>887.4 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td>%</td></tr></table> Total revenue increased $887.4 million, or 20%, in 2023 compared to 2022. We continued to experience large organic revenue growth (i.e., revenue growth excluding attribution from recent acquisitions) with diversification of revenue geographically, and across both customer and industry segments. Revenue from all regions grew, with the Americas contributing the largest portion of the increase on an absolute dollar basis and EMEA, contributing the largest portion of the increase on a percentage basis. Product revenue increased $146.8 million, or 8%, in 2023 compared to 2022. Product revenue growth was impacted by an elevated cyber threat landscape, the convergence of security and networking, the impact of certain historical pricing actions, improving supply chain dynamics, and changes in the backlog balance. Product revenue growth rates decreased from 42% in 2022 to 8% in 2023 partially due to overall softening macroeconomic conditions. Service revenue increased $740.6 million, or 28%, in 2023 compared to 2022. Service revenue growth has accelerated over the past three years from 24% in 2021, to 26% in 2022 to 28% in 2023. Compared to 2022, FortiGuard security subscription revenue and other security subscription revenue increased $471.1 million, or 33% and FortiCare, other technical support and other revenues increased $269.5 million, or 22%, in 2023. The increases in service revenue were primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions delivered to on-premise and cloud-based environments. Security subscriptions outpaced technical support growth due to strength in secure networking subscriptions, SecOps and SASE. Of the service revenue recognized in 2023, 67% was included in the deferred revenue balance as of December 31, 2022. Of the service revenue recognized in 2022, 66% was included in the deferred revenue balance as of December 31, 2021. Of the service revenue recognized in each quarter of 2023, from 88% to 89% was included in deferred revenue as of the beginning of the respective quarter. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 92: Table of Contents Net revenues by geographic area presented based upon the location of the customer are as follows: <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">(in thousands)</td></tr><tr><td colspan="3">United States</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>579,025 </td><td></td><td colspan="3"></td><td>$</td><td>515,894 </td><td></td><td colspan="3"></td><td>$</td><td>414,856 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">198,682 </td><td></td><td colspan="3"></td><td colspan="2">169,189 </td><td></td><td colspan="3"></td><td colspan="2">120,548 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>777,707 </td><td></td><td colspan="3"></td><td>$</td><td>685,083 </td><td></td><td colspan="3"></td><td>$</td><td>535,404 </td><td></td></tr></table> Property and equipment, net by geographic area is presented in the table below: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">As of December 31, 2023</td><td colspan="3"></td><td colspan="3">As of December 31, 2022</td></tr><tr><td colspan="3"> </td><td colspan="9">(in thousands)</td></tr><tr><td colspan="3">United States</td><td>$</td><td>27,609 </td><td></td><td colspan="3"></td><td>$</td><td>41,570 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">12,033 </td><td></td><td colspan="3"></td><td colspan="2">16,321 </td><td></td></tr><tr><td colspan="3">Total</td><td>$</td><td>39,642 </td><td></td><td colspan="3"></td><td>$</td><td>57,891 </td><td></td></tr></table> (19) Restructuring On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company's workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the "Restructuring Plan"). The Restructuring Plan included a reduction of the Company's workforce by approximately 16%. In 2023, we incurred $22.2 million of restructuring charges which were recorded within restructuring in the condensed consolidated statements of operations. In addition, we incurred $1.3 million of stock-based compensation expense related to acceleration of share-based awards. As of December 31, 2023, the restructuring liability accrued but not paid totaled $3.8 million, which is included within accrued expenses in the condensed consolidated balance sheets. The execution of the Restructuring Plan was substantially complete as of December 31, 2023 and we expect the remaining restructuring liability to be paid by the end of the first quarter of 2024. Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the fourth quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. In 2023, we permanently closed certain idle office spaces in Plano, Texas, Los Angeles, California and Toronto, Canada, which resulted in an impairment loss of $3.6 million. Refer to Note 12, Leases, for further details on the impairment of long-lived assets. The following table presents the activity of the restructuring liability for the year ended December 31, 2023: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Restructuring Liability</td></tr><tr><td colspan="3"> </td><td colspan="3">(in thousands)</td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Charges</td><td colspan="2">22,227 </td><td></td></tr><tr><td colspan="3">Payments</td><td colspan="2">(18,463)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td>$</td><td>3,764 </td><td></td></tr></table>
2023 and 2022 Revenue <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="5"> </td><td colspan="21">Year Ended December 31, </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="9">2023</td><td colspan="3"></td><td colspan="9">2022</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">% ofRevenue</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">% ofRevenue</td><td colspan="3"></td><td colspan="3">Change</td><td colspan="3"></td><td colspan="3">% Change</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="33">(in millions, except percentages)</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td colspan="2">36 </td><td>%</td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td colspan="2">40 </td><td>%</td><td colspan="3"></td><td>$</td><td>146.8 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td></tr><tr><td colspan="3">Service</td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">60 </td><td></td><td colspan="3"></td><td colspan="2">740.6 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td>$</td><td>5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>887.4 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td>%</td></tr><tr><td colspan="3">Revenue by geography:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Americas</td><td>$</td><td>2,175.2 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td><td colspan="3"></td><td>$</td><td>1,785.0 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td><td colspan="3"></td><td>$</td><td>390.2 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td>%</td></tr><tr><td colspan="3">EMEA</td><td colspan="2">2,072.9 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="2">1,691.8 </td><td></td><td colspan="3"></td><td colspan="2">38 </td><td></td><td colspan="3"></td><td colspan="2">381.1 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td></td></tr><tr><td colspan="3">APAC</td><td colspan="2">1,056.7 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">940.6 </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">116.1 </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td>$</td><td>5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td>%</td><td colspan="3"></td><td>$</td><td>887.4 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td>%</td></tr></table> Total revenue increased $887.4 million, or 20%, in 2023 compared to 2022. We continued to experience large organic revenue growth (i.e., revenue growth excluding attribution from recent acquisitions) with diversification of revenue geographically, and across both customer and industry segments. Revenue from all regions grew, with the Americas contributing the largest portion of the increase on an absolute dollar basis and EMEA, contributing the largest portion of the increase on a percentage basis. Product revenue increased $146.8 million, or 8%, in 2023 compared to 2022. Product revenue growth was impacted by an elevated cyber threat landscape, the convergence of security and networking, the impact of certain historical pricing actions, improving supply chain dynamics, and changes in the backlog balance. Product revenue growth rates decreased from 42% in 2022 to 8% in 2023 partially due to overall softening macroeconomic conditions. Service revenue increased $740.6 million, or 28%, in 2023 compared to 2022. Service revenue growth has accelerated over the past three years from 24% in 2021, to 26% in 2022 to 28% in 2023. Compared to 2022, FortiGuard security subscription revenue and other security subscription revenue increased $471.1 million, or 33% and FortiCare, other technical support and other revenues increased $269.5 million, or 22%, in 2023. The increases in service revenue were primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions delivered to on-premise and cloud-based environments. Security subscriptions outpaced technical support growth due to strength in secure networking subscriptions, SecOps and SASE. Of the service revenue recognized in 2023, 67% was included in the deferred revenue balance as of December 31, 2022. Of the service revenue recognized in 2022, 66% was included in the deferred revenue balance as of December 31, 2021. Of the service revenue recognized in each quarter of 2023, from 88% to 89% was included in deferred revenue as of the beginning of the respective quarter. 61 , Table of Contents Net revenues by geographic area presented based upon the location of the customer are as follows: <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">(in thousands)</td></tr><tr><td colspan="3">United States</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>579,025 </td><td></td><td colspan="3"></td><td>$</td><td>515,894 </td><td></td><td colspan="3"></td><td>$</td><td>414,856 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">198,682 </td><td></td><td colspan="3"></td><td colspan="2">169,189 </td><td></td><td colspan="3"></td><td colspan="2">120,548 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>777,707 </td><td></td><td colspan="3"></td><td>$</td><td>685,083 </td><td></td><td colspan="3"></td><td>$</td><td>535,404 </td><td></td></tr></table> Property and equipment, net by geographic area is presented in the table below: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">As of December 31, 2023</td><td colspan="3"></td><td colspan="3">As of December 31, 2022</td></tr><tr><td colspan="3"> </td><td colspan="9">(in thousands)</td></tr><tr><td colspan="3">United States</td><td>$</td><td>27,609 </td><td></td><td colspan="3"></td><td>$</td><td>41,570 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">12,033 </td><td></td><td colspan="3"></td><td colspan="2">16,321 </td><td></td></tr><tr><td colspan="3">Total</td><td>$</td><td>39,642 </td><td></td><td colspan="3"></td><td>$</td><td>57,891 </td><td></td></tr></table> (19) Restructuring On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company's workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the "Restructuring Plan"). The Restructuring Plan included a reduction of the Company's workforce by approximately 16%. In 2023, we incurred $22.2 million of restructuring charges which were recorded within restructuring in the condensed consolidated statements of operations. In addition, we incurred $1.3 million of stock-based compensation expense related to acceleration of share-based awards. As of December 31, 2023, the restructuring liability accrued but not paid totaled $3.8 million, which is included within accrued expenses in the condensed consolidated balance sheets. The execution of the Restructuring Plan was substantially complete as of December 31, 2023 and we expect the remaining restructuring liability to be paid by the end of the first quarter of 2024. Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the fourth quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. In 2023, we permanently closed certain idle office spaces in Plano, Texas, Los Angeles, California and Toronto, Canada, which resulted in an impairment loss of $3.6 million. Refer to Note 12, Leases, for further details on the impairment of long-lived assets. The following table presents the activity of the restructuring liability for the year ended December 31, 2023: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Restructuring Liability</td></tr><tr><td colspan="3"> </td><td colspan="3">(in thousands)</td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Charges</td><td colspan="2">22,227 </td><td></td></tr><tr><td colspan="3">Payments</td><td colspan="2">(18,463)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td>$</td><td>3,764 </td><td></td></tr></table>
q_com048
How do the operating margins of Fortinet Inc. and Rapid7 Inc. compare for 2023?
In 2023, Fortinet Inc. reported an operating margin of 23.4%. Rapid7 Inc. reported a GAAP loss from operations of $80.7 million, which translates to a negative operating margin of 10.4% in 2023. Fortinet's positive operating margin indicates strong operational efficiency, whereas Rapid7's negative operating margin, despite improvement, indicates ongoing operational challenges.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com049
Compare the interest income and expense for Fortinet Inc. and Rapid7 Inc. for 2023.
In 2023, Fortinet Inc. reported interest income of $119.7 million, and interest expense of $21.0 million. Rapid7 Inc. reported interest income of $10.2 million in 2023 and interest expense of $64.7 million. While both companies saw increases in interest income, Fortinet's interest income is substantially higher. Rapid7's interest expense is significantly higher than Fortinet's, indicating higher debt-related costs.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com050
Compare the research and development (R&D) expenses of Fortinet Inc. and Rapid7 Inc. for 2023.
In 2023, Fortinet Inc. reported R&D expenses of $613.8 million, which accounted for 12% of its total revenue. Rapid7 Inc. reported R&D expenses of $176.8 million in 2023, which accounted for 22.7% of its total revenue. While Fortinet's R&D expenses are significantly higher in absolute terms, Rapid7 allocates a larger percentage of its revenue to R&D, indicating a strong focus on innovation relative to its size.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com051
How do the sales and marketing expenses of Fortinet Inc. and Rapid7 Inc. compare for 2023?
In 2023, Fortinet Inc. reported sales and marketing expenses of $2.01 billion, which accounted for 38% of its total revenue, a 19%. Rapid7 Inc. reported sales and marketing expenses of $312.6 million in 2023, which accounted for 40.2% of its total revenue. While Fortinet's sales and marketing expenses are much higher in absolute terms, Rapid7 spends a higher percentage of its revenue on sales and marketing, indicating a more aggressive approach to market penetration relative to its size.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com052
Compare the general and administrative (G&A) expenses of Fortinet Inc. and Rapid7 Inc. for 2023.
In 2023, Fortinet Inc. reported G&A expenses of $211.3 million, which accounted for 4% of its total revenue. Rapid7 Inc. reported G&A expenses of $84.3 million in 2023, which accounted for 10.8% of its total revenue. Fortinet's G&A expenses are higher in absolute terms, but Rapid7 allocates a larger percentage of its revenue to G&A, indicating higher relative administrative costs.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com053
Compare the cash flows from operating activities of Fortinet Inc. and Rapid7 Inc. for 2023.
In 2023, Fortinet Inc. reported cash flows from operating activities of $1.94 billion. Rapid7 Inc. reported cash flows from operating activities of $104.3 million in 2023. While both companies saw an increase in cash flows from operating activities, Fortinet's cash flows are significantly higher, indicating stronger operational cash generation.
Comparison
72,73,74,75;62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com054
Compare the year-over-year change in net income for Fortinet Inc. and Rapid7 Inc. from 2022 to 2023.
For Fortinet Inc.: - Net Income (2022): $857.3 million, - Net Income (2023): $1,147.8 million,- Year-over-Year Change: $1,147.8 million - $857.3 million = $290.5 million. For Rapid7 Inc.: - Net Loss (2022): -$124,717 thousand, - Net Loss (2023): -$149,260 thousand-->- Year-over-Year Change: -$149,260 thousand - (-$124,717 thousand) = -$24,543 thousand Fortinet Inc. experienced a significant increase in net income, with a year-over-year change of $290.5 million, indicating strong growth in profitability. In contrast, Rapid7 Inc. experienced a further decline in net income, with a year-over-year change of -$24,543 thousand, indicating worsening financial performance. In summary, Fortinet Inc. showed strong growth in net income, while Rapid7 Inc. experienced a further decline in profitability.
Comparison
71,72,73,74,75;61,62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com055
How does the total revenue of Fortinet Inc. compare to Rapid7 Inc. in 2023?
In 2023, Fortinet Inc. reported a total revenue of $5.30 billion, which represents a 20% increase from $4.42 billion in 2022. On the other hand, Rapid7 Inc. reported a total revenue of $777.7 million in 2023, reflecting a 13.5% increase from $685.1 million in 2022. This comparison shows that Fortinet Inc.'s total revenue is significantly higher than that of Rapid7 Inc. in 2023. Fortinet's revenue growth is driven by both product and service revenues, with service revenue showing a particularly strong increase. In contrast, Rapid7's revenue growth is primarily driven by product sales, with a smaller contribution from professional services.
Comparison
71,72,73,74,75;61,62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com056
Compare the revenue growth rates of Fortinet Inc. and Rapid7 Inc. from 2022 to 2023.
From 2022 to 2023, Fortinet Inc. experienced a revenue growth rate of 20%, increasing from $4.42 billion to $5.30 billion. This growth was driven by a combination of product revenue, which grew by 8%, and service revenue, which grew by 28%. In comparison, Rapid7 Inc. saw a revenue growth rate of 13.5%, with total revenue increasing from $685.1 million in 2022 to $777.7 million in 2023. Rapid7's growth was primarily driven by a 14.3% increase in product revenue, while professional services revenue remained relatively flat. Thus, Fortinet Inc. not only has a higher total revenue but also a higher growth rate compared to Rapid7 Inc.
Comparison
71,72,73,74,75;61,62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com057
Compare the provision for income taxes of Fortinet Inc. and Rapid7 Inc. in 2023.
In 2023, Fortinet Inc. reported a provision for income taxes of $143.8 million, reflecting an effective tax rate of 11%. In contrast, Rapid7 Inc. reported a benefit from income taxes of $0.5 million in 2023. This comparison shows that Fortinet Inc. has a substantial tax expense, while Rapid7 Inc. recorded a tax benefit, likely due to its net loss position.
Comparison
71,72,73,74,75;61,62,63,64,65
0001262039-24-000014;0001560327-24-000021
ITEM 8. Financial Statements and Supplementary Data;Item 8. Financial Statements and Supplementary Data.
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) | | | | | | | | | |---:|:-----------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------|:--------|:-----------------|:----------|:---|:--------| | 1 | | December 31,2023 | | December 31,2022 | | | | | 2 | ASSETS | | | | | | | | 3 | CURRENT ASSETS: | | | | | | | | 4 | Cash and cash equivalents | $ | 1,397.9 | | | $ | 1,682.9 | | 5 | Short-term investments | 1,021.5 | | | 502.6 | | | | 6 | Marketable equity securities | 21.0 | | | 25.5 | | | | 7 | Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively | 1,402.0 | | | 1,261.7 | | | | 8 | Inventory | 484.8 | | | 264.6 | | | | 9 | Prepaid expenses and other current assets | 101.1 | | | 73.1 | | | | 10 | Total current assets | 4,428.3 | | | 3,810.4 | | | | 11 | LONG-TERM INVESTMENTS | - | | | 45.5 | | | | 12 | PROPERTY AND EQUIPMENT-NET | 1,044.4 | | | 898.5 | | | | 13 | DEFERRED CONTRACT COSTS | 605.6 | | | 518.2 | | | | 14 | DEFERRED TAX ASSETS | 868.8 | | | 569.4 | | | | 15 | GOODWILL | 126.5 | | | 128.0 | | | | 16 | OTHER INTANGIBLE ASSETS-NET | 35.3 | | | 56.0 | | | | 17 | OTHER ASSETS | 150.0 | | | 202.0 | | | | 18 | TOTAL ASSETS | $ | 7,258.9 | | | $ | 6,228.0 | | 20 | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | | | | | 21 | CURRENT LIABILITIES: | | | | | | | | 22 | Accounts payable | $ | 204.3 | | | $ | 243.4 | | 23 | Accrued liabilities | 423.7 | | | 266.3 | | | | 24 | Accrued payroll and compensation | 242.3 | | | 219.4 | | | | 25 | Deferred revenue | 2,848.7 | | | 2,349.3 | | | | 26 | Total current liabilities | 3,719.0 | | | 3,078.4 | | | | 27 | DEFERRED REVENUE | 2,886.3 | | | 2,291.0 | | | | 28 | LONG-TERM DEBT | 992.3 | | | 990.4 | | | | 29 | OTHER LIABILITIES | 124.7 | | | 149.8 | | | | 30 | Total liabilities | 7,722.3 | | | 6,509.6 | | | | 31 | COMMITMENTS AND CONTINGENCIES (Note 12) | | | | | | | | 32 | STOCKHOLDERS' DEFICIT: | | | | | | | | 33 | Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively | 0.8 | | | 0.8 | | | | 34 | Additional paid-in capital | 1,416.4 | | | 1,284.2 | | | | 35 | Accumulated other comprehensive loss | (18.9) | | | (20.2) | | | | 36 | Accumulated deficit | (1,861.7) | | | (1,546.4) | | | | 37 | Total stockholders' deficit | (463.4) | | | (281.6) | | | | 40 | TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 7,258.9 | | | $ | 6,228.0 | See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:------------------------|:--------|:--------|:---|:--------|:--------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | 2 | 2023 | | 2022 | 2021 | | | | | | | 3 | REVENUE: | | | | | | | | | | 4 | Product | $ | 1,927.3 | | $ | 1,780.5 | | $ | 1,255.0 | | 5 | Service | 3,377.5 | | 2,636.9 | | | 2,087.2 | | | | 6 | Total revenue | 5,304.8 | | 4,417.4 | | | 3,342.2 | | | | 7 | COST OF REVENUE: | | | | | | | | | | 8 | Product | 763.6 | | 691.3 | | | 487.7 | | | | 9 | Service | 473.6 | | 393.6 | | | 295.3 | | | | 10 | Total cost of revenue | 1,237.2 | | 1,084.9 | | | 783.0 | | | | 11 | GROSS PROFIT: | | | | | | | | | | 12 | Product | 1,163.7 | | 1,089.2 | | | 767.3 | | | | 13 | Service | 2,903.9 | | 2,243.3 | | | 1,791.9 | | | | 14 | Total gross profit | 4,067.6 | | 3,332.5 | | | 2,559.2 | | | | 15 | OPERATING EXPENSES: | | | | | | | | | | 16 | Research and development | 613.8 | | 512.4 | | | 424.2 | | | | 17 | Sales and marketing | 2,006.0 | | 1,686.1 | | | 1,345.7 | | | | 18 | General and administrative | 211.3 | | 169.0 | | | 143.5 | | | | 19 | Gain on intellectual property matter | (4.6) | | (4.6) | | | (4.6) | | | | 20 | Total operating expenses | 2,826.5 | | 2,362.9 | | | 1,908.8 | | | | 21 | OPERATING INCOME | 1,241.1 | | 969.6 | | | 650.4 | | | | 22 | INTEREST INCOME | 119.7 | | 17.4 | | | 4.5 | | | | 23 | INTEREST EXPENSE | (21.0) | | (18.0) | | | (14.9) | | | | 24 | OTHER EXPENSE-NET | (6.1) | | (13.5) | | | (11.6) | | | | 25 | INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS | 1,333.7 | | 955.5 | | | 628.4 | | | | 26 | PROVISION FOR INCOME TAXES | 143.8 | | 30.8 | | | 14.1 | | | | 27 | LOSS FROM EQUITY METHOD INVESTMENTS | (42.1) | | (68.1) | | | (7.6) | | | | 28 | NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 1,147.8 | | 856.6 | | | 606.7 | | | | 29 | LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | - | | (0.7) | | | (0.1) | | | | 30 | NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ | 1,147.8 | | $ | 857.3 | | $ | 606.8 | | 31 | Net income per share attributable to Fortinet, Inc. (Note 9): | | | | | | | | | | 32 | Basic | $ | 1.47 | | $ | 1.08 | | $ | 0.74 | | 33 | Diluted | $ | 1.46 | | $ | 1.06 | | $ | 0.73 | | 34 | Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | | | | | | | | | | 35 | Basic | 778.6 | | 791.4 | | | 816.1 | | | | 36 | Diluted | 788.2 | | 805.3 | | | 835.3 | | | See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:-------|:-----|:------|:------|:---|:------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Change in foreign currency translation | (5.5) | | | (9.7) | | | (3.8) | | | | 6 | Change in unrealized gains (losses) on investments | 8.8 | | | (6.2) | | | (3.5) | | | | 7 | Less: tax provision (benefit) related to items of other comprehensive income (loss) | 2.0 | | | (1.4) | | | (0.8) | | | | 8 | Other comprehensive income (loss) | 1.3 | | | (14.5) | | | (6.5) | | | | 9 | Comprehensive income including non-controlling interests | 1,149.1 | | | 842.1 | | | 600.2 | | | | 10 | Less: comprehensive income (loss) attributable to non-controlling interests | - | | | 0.2 | | | (1.1) | | | | 11 | Comprehensive income attributable to Fortinet, Inc. | $ | 1,149.1 | | | $ | 841.9 | | $ | 601.3 | See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------|:-------------|:-------|:-------------------------|:----|:--------------------------------------------|:--------------------|:---|:--------------------------|:-------|:-----------------------|:---|:----------|:-------|:----------|:----------|:---|:---|:---|:--------| | 1 | | Common Stock | | AdditionalPaid-InCapital | | AccumulatedOtherComprehensive Income (Loss) | Accumulated Deficit | | Non-Controlling Interests | | Total Equity (Deficit) | | | | | | | | | | | 2 | Shares | | Amount | | | | | | | | | | | | | | | | | | | 3 | BALANCE-December 31, 2020 | 812.7 | | | $ | 0.8 | | $ | 1,206.6 | | | $ | 0.7 | $ | (352.1) | | $ | - | $ | 856.0 | | 4 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 10.2 | | | - | | (141.7) | | | - | | | - | - | | (141.7) | | | | | | 5 | Repurchase and retirement of common stock | (12.9) | | | - | | (19.2) | | | - | | | (722.6) | - | | (741.8) | | | | | | 6 | Stock-based compensation expense | - | | | - | | 207.9 | | | - | | | - | - | | 207.9 | | | | | | 7 | Recognition of non-controlling interests upon business combination | - | | | - | | - | | | - | | | - | 17.8 | | 17.8 | | | | | | 8 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (2.7) | | | - | - | | (2.7) | | | | | | 9 | Foreign currency translation adjustment | - | | | - | | - | | | (2.8) | | | - | (1.0) | | (3.8) | | | | | | 10 | Net income | - | | | - | | - | | | - | | | 606.8 | (0.1) | | 606.7 | | | | | | 11 | BALANCE-December 31, 2021 | 810.0 | | | 0.8 | | 1,253.6 | | | (4.8) | | | (467.9) | 16.7 | | 798.4 | | | | | | 12 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 7.5 | | | - | | (134.7) | | | - | | | - | - | | (134.7) | | | | | | 13 | Repurchase and retirement of common stock | (36.0) | | | - | | (55.4) | | | - | | | (1,935.8) | - | | (1,991.2) | | | | | | 14 | Stock-based compensation expense | - | | | - | | 217.3 | | | - | | | - | - | | 217.3 | | | | | | 15 | Acquisition of the non-controlling interests | - | | | - | | 3.4 | | | - | | | - | (16.9) | | (13.5) | | | | | | 16 | Net unrealized loss on investments - net of tax | - | | | - | | - | | | (4.8) | | | - | - | | (4.8) | | | | | | 17 | Foreign currency translation adjustment | - | | | - | | - | | | (10.6) | | | - | 0.9 | | (9.7) | | | | | | 18 | Net income | - | | | - | | - | | | - | | | 857.3 | (0.7) | | 856.6 | | | | | | 19 | BALANCE-December 31, 2022 | 781.5 | | | 0.8 | | 1,284.2 | | | (20.2) | | | (1,546.4) | - | | (281.6) | | | | | | 20 | Issuance of common stock in connection with equity incentive plans - net of tax withholding | 6.7 | | | - | | (68.5) | | | - | | | - | - | | (68.5) | | | | | | 21 | Repurchase and retirement of common stock | (27.2) | | | - | | (37.4) | | | - | | | (1,463.1) | - | | (1,500.5) | | | | | | 22 | Excise tax on net stock repurchases | - | | | - | | (10.9) | | | - | | | - | - | | (10.9) | | | | | | 23 | Stock-based compensation expense | - | | | - | | 249.0 | | | - | | | - | - | | 249.0 | | | | | | 24 | Net unrealized gain on investments - net of tax | - | | | - | | - | | | 6.8 | | | - | - | | 6.8 | | | | | | 25 | Foreign currency translation adjustment | - | | | - | | - | | | (5.5) | | | - | - | | (5.5) | | | | | | 26 | Net income | - | | | - | | - | | | - | | | 1,147.8 | - | | 1,147.8 | | | | | | 27 | BALANCE-December 31, 2023 | 761.0 | | | $ | 0.8 | | $ | 1,416.4 | | | $ | (18.9) | $ | (1,861.7) | | $ | - | $ | (463.4) | See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:------------------------|:--------|:-----|:----------|:-----|:--------|:----------|:---|:--------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | 4 | Net income including non-controlling interests | $ | 1,147.8 | | | $ | 856.6 | | $ | 606.7 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Stock-based compensation | 249.0 | | | 217.3 | | | 207.9 | | | | 7 | Amortization of deferred contract costs | 266.3 | | | 223.3 | | | 175.9 | | | | 8 | Depreciation and amortization | 113.4 | | | 104.3 | | | 84.4 | | | | 9 | Amortization of investment premiums (discounts) | (27.7) | | | 4.4 | | | 6.9 | | | | 10 | Loss from equity method investments | 42.1 | | | 68.1 | | | 7.6 | | | | 11 | Other | 18.5 | | | 23.6 | | | 7.9 | | | | 12 | Changes in operating assets and liabilities, net of impact of business combinations: | | | | | | | | | | | 13 | Accounts receivable-net | (146.4) | | | (456.7) | | | (72.5) | | | | 14 | Inventory | (253.5) | | | (109.1) | | | (19.4) | | | | 15 | Prepaid expenses and other current assets | (27.6) | | | (7.7) | | | (17.7) | | | | 16 | Deferred contract costs | (353.5) | | | (318.2) | | | (294.5) | | | | 17 | Deferred tax assets | (301.9) | | | (226.4) | | | (94.0) | | | | 18 | Other assets | 17.7 | | | (35.3) | | | (19.0) | | | | 19 | Accounts payable | (43.1) | | | 105.2 | | | (13.1) | | | | 20 | Accrued liabilities | 137.4 | | | 55.2 | | | 49.9 | | | | 21 | Accrued payroll and compensation | 23.4 | | | 25.0 | | | 44.0 | | | | 22 | Other liabilities | (21.7) | | | 23.5 | | | (0.7) | | | | 23 | Deferred revenue | 1,095.3 | | | 1,177.5 | | | 839.4 | | | | 24 | Net cash provided by operating activities | 1,935.5 | | | 1,730.6 | | | 1,499.7 | | | | 25 | CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | 26 | Purchases of investments | (1,855.8) | | | (389.1) | | | (2,308.0) | | | | 27 | Sales of investments | 4.0 | | | 3.0 | | | 85.5 | | | | 28 | Maturities of investments | 1,414.8 | | | 1,462.0 | | | 1,470.3 | | | | 29 | Purchases of property and equipment | (204.1) | | | (281.2) | | | (295.9) | | | | 30 | Purchases of Investments in privately held companies | (8.5) | | | - | | | (160.0) | | | | 31 | Payments made in connection with business combinations, net of cash acquired | - | | | (30.8) | | | (74.9) | | | | 32 | Purchases of marketable equity securities | - | | | - | | | (42.5) | | | | 33 | Other | 0.3 | | | - | | | 0.4 | | | | 34 | Net cash provided by (used in) investing activities | (649.3) | | | 763.9 | | | (1,325.1) | | | | 35 | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | 36 | Proceeds from long-term borrowings, net of discount and underwriting fees | - | | | - | | | 989.4 | | | | 37 | Payments for debt issuance costs | - | | | - | | | (2.4) | | | | 38 | Payments of debt assumed in connection with business combination | - | | | - | | | (19.5) | | | | 39 | Repurchase and retirement of common stock | (1,500.5) | | | (1,991.2) | | | (741.8) | | | | 40 | Proceeds from issuance of common stock | 43.8 | | | 26.1 | | | 26.0 | | | | 41 | Taxes paid related to net share settlement of equity awards | (112.5) | | | (160.4) | | | (167.9) | | | | 42 | Other | (1.2) | | | (4.8) | | | (1.0) | | | | 43 | Net cash provided by (used in) financing activities | (1,570.4) | | | (2,130.3) | | | 82.8 | | | | 44 | EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (0.8) | | | (0.4) | | | (0.1) | | | | 45 | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (285.0) | | | 363.8 | | | 257.3 | | | | 46 | CASH AND CASH EQUIVALENTS-Beginning of year | 1,682.9 | | | 1,319.1 | | | 1,061.8 | | | | 47 | CASH AND CASH EQUIVALENTS-End of year | $ | 1,397.9 | | | $ | 1,682.9 | | $ | 1,319.1 | | 48 | SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | | | | | | | | | | | 49 | Cash paid for income taxes-net | $ | 426.3 | | | $ | 260.2 | | $ | 127.4 | | 50 | Operating lease liabilities arising from obtaining right-of-use assets | $ | 19.2 | | | $ | 65.8 | | $ | 39.6 | | 52 | NON-CASH INVESTING AND FINANCING ACTIVITIES: | | | | | | | | | | | 53 | Transfers of evaluation units from inventory to property and equipment | $ | 31.8 | | | $ | 17.1 | | $ | 15.9 | | 54 | Liability for purchase of property and equipment | $ | 23.6 | | | $ | 21.2 | | $ | 21.9 | | 55 | Excise tax payable on net stock repurchases | $ | 10.9 | | | $ | - | | $ | - | | 56 | Liability incurred in connection with business combinations | $ | - | | | $ | 0.8 | | $ | 0.9 | See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)| | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:----------|:------------------|:----------|:---|:----------| | 1 | | December 31, 2023 | | December 31, 2022 | | | | | 2 | Assets | | | | | | | | 3 | Current assets: | | | | | | | | 4 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | 5 | Short-term investments | 169,544 | | | 84,162 | | | | 6 | Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively | 164,862 | | | 152,045 | | | | 7 | Deferred contract acquisition and fulfillment costs, current portion | 45,008 | | | 34,906 | | | | 8 | Prepaid expenses and other current assets | 41,407 | | | 31,907 | | | | 9 | Total current assets | 634,450 | | | 510,307 | | | | 10 | Long-term investments | 56,171 | | | 9,756 | | | | 11 | Property and equipment, net | 39,642 | | | 57,891 | | | | 12 | Operating lease right-of-use assets | 54,693 | | | 79,342 | | | | 13 | Deferred contract acquisition and fulfillment costs, non-current portion | 76,601 | | | 68,169 | | | | 14 | Goodwill | 536,351 | | | 515,631 | | | | 15 | Intangible assets, net | 94,546 | | | 101,269 | | | | 16 | Other assets | 12,894 | | | 16,626 | | | | 17 | Total assets | $ | 1,505,348 | | | $ | 1,358,991 | | 18 | Liabilities and Stockholders' Equity (Deficit) | | | | | | | | 19 | Current liabilities: | | | | | | | | 20 | Accounts payable | $ | 15,812 | | | $ | 10,255 | | 21 | Accrued expenses | 84,489 | | | 80,306 | | | | 22 | Operating lease liabilities, current portion | 13,452 | | | 12,444 | | | | 23 | Deferred revenue, current portion | 455,503 | | | 426,599 | | | | 24 | Other current liabilities | 536 | | | 1,663 | | | | 25 | Total current liabilities | 569,792 | | | 531,267 | | | | 26 | Convertible senior notes, net | 929,996 | | | 815,948 | | | | 27 | Operating lease liabilities, non-current portion | 81,130 | | | 85,946 | | | | 28 | Deferred revenue, non-current portion | 32,577 | | | 31,040 | | | | 29 | Other long-term liabilities | 10,032 | | | 14,864 | | | | 30 | Total liabilities | $ | 1,623,527 | | | $ | 1,479,065 | | 31 | Stockholders' deficit: | | | | | | | | 32 | Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022 | $ | - | | | $ | - | | 33 | Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively | 617 | | | 597 | | | | 34 | Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively | (4,765) | | | (4,764) | | | | 35 | Additional paid-in-capital | 894,630 | | | 746,249 | | | | 36 | Accumulated other comprehensive (loss) income | 1,344 | | | (1,411) | | | | 37 | Accumulated deficit | (1,010,005) | | | (860,745) | | | | 38 | Total stockholders' deficit | (118,179) | | | (120,074) | | | | 39 | Total liabilities and stockholders' deficit | $ | 1,505,348 | | | $ | 1,358,991 | See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)| | | | | | | | | | | | | |---:|:--------------------------------------------------------------|:------------------------|:-----------|:----------|:-----|:-----------|:-----|:----------|:-----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Revenue: | | | | | | | | | | | | 4 | Products | | $ | 740,168 | | | $ | 647,535 | | $ | 500,843 | | 5 | Professional services | | 37,539 | | | 37,548 | | | 34,561 | | | | 6 | Total revenue | | 777,707 | | | 685,083 | | | 535,404 | | | | 7 | Cost of revenue: | | | | | | | | | | | | 8 | Products | | 202,904 | | | 182,212 | | | 140,773 | | | | 9 | Professional services | | 28,837 | | | 32,137 | | | 28,175 | | | | 10 | Total cost of revenue | | 231,741 | | | 214,349 | | | 168,948 | | | | 11 | Total gross profit | | 545,966 | | | 470,734 | | | 366,456 | | | | 12 | Operating expenses: | | | | | | | | | | | | 13 | Research and development | | 176,776 | | | 189,970 | | | 160,779 | | | | 14 | Sales and marketing | | 312,636 | | | 307,409 | | | 247,453 | | | | 15 | General and administrative | | 84,276 | | | 84,969 | | | 78,289 | | | | 16 | Impairment of long-lived assets | | 30,784 | | | - | | | - | | | | 17 | Restructuring | | 22,227 | | | - | | | - | | | | 18 | Total operating expenses | | 626,699 | | | 582,348 | | | 486,521 | | | | 19 | Loss from operations | | (80,733) | | | (111,614) | | | (120,065) | | | | 20 | Other income (expense), net: | | | | | | | | | | | | 21 | Interest income | | 10,177 | | | 1,813 | | | 365 | | | | 22 | Interest expense | | (64,700) | | | (10,982) | | | (14,292) | | | | 23 | Other income (expense), net | | (14,522) | | | (1,522) | | | (1,921) | | | | 24 | Loss before income taxes | | (149,778) | | | (122,305) | | | (135,913) | | | | 25 | (Benefit from) provision for income taxes | | (518) | | | 2,412 | | | 10,421 | | | | 26 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 27 | Net loss per share, basic and diluted | | $ | (2.46) | | | $ | (2.13) | | $ | (2.65) | | 28 | Weighted-average common shares outstanding, basic and diluted | | 60,756,087 | | | 58,552,065 | | | 55,270,998 | | | See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)| | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:------------------------|:------|:----------|:-----|:--------|:-----|:----------|:--------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | | 2 | | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net loss | | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | 5 | Change in fair value of cash flow hedges | | 797 | | | (3,874) | | | (86) | | | | 6 | Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes | | 724 | | | 4,053 | | | - | | | | 7 | Total change in unrealized gains (losses) on cash flow hedges | | 1,521 | | | 179 | | | (86) | | | | 8 | Change unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,043) | | | | 9 | Adjustment for net gains realized and included in net loss | | - | | | - | | | (137) | | | | 10 | Total change in unrealized gains (losses) on investments | | 1,234 | | | (778) | | | (1,180) | | | | 11 | Total other comprehensive income (loss) | | 2,755 | | | (599) | | | (1,266) | | | | 12 | Comprehensive loss | | $ | (146,505) | | | $ | (125,316) | | $ | (147,600) | See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------|:-------------|:---------------|:----|:--------------------------|:-------------------------------------------|:----|:-------------------|:----|:-----------------------------------|:--------|:---------|:---|:--------|:---|:----------|:--------|:----------|:---|:------------|:---|:----------| | 1 | | Common stock | Treasury stock | | Additionalpaid-in-capital | Accumulatedothercomprehensiveincome (loss) | | Accumulateddeficit | | Totalstockholders'equity (deficit) | | | | | | | | | | | | | | 2 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | 3 | Balance, December 31, 2020 | 52,225 | | $ | 522 | | 487 | | | $ | (4,764) | | $ | 692,603 | | $ | 454 | | $ | (617,279) | $ | 71,536 | | 4 | Stock-based compensation expense | - | | - | | - | | | - | | | 100,317 | | - | | - | | 100,317 | | | | | | 5 | Issuance of common stock under employee stock purchase plan | 222 | | 2 | | - | | | - | | | 9,274 | | - | | - | | 9,276 | | | | | | 6 | Vesting of restricted stock units | 1,611 | | 16 | | - | | | - | | | (16) | | - | | - | | - | | | | | | 7 | Shares withheld for employee taxes | (157) | | (2) | | - | | | - | | | (16,042) | | - | | - | | (16,044) | | | | | | 8 | Issuance of common stock upon exercise of stock options | 521 | | 6 | | - | | | - | | | 4,300 | | - | | - | | 4,306 | | | | | | 9 | Purchase of capped calls related to convertible senior notes | - | | - | | - | | | - | | | (76,020) | | - | | - | | (76,020) | | | | | | 10 | Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes | 2,897 | | 29 | | - | | | - | | | (3,094) | | - | | - | | (3,065) | | | | | | 11 | Issuance of common stock in connection with inducement of convertible senior notes | 35 | | - | | - | | | - | | | 2,740 | | - | | - | | 2,740 | | | | | | 12 | Issuance of common stock related to acquisition | 341 | | 4 | | - | | | - | | | (4) | | - | | - | | - | | | | | | 13 | Cumulative-effect adjustment for the adoption of ASU 2020-06 | - | | - | | - | | | - | | | (99,026) | | - | | 27,585 | | (71,441) | | | | | | 14 | Other comprehensive income | - | | - | | - | | | - | | | - | | (1,266) | | - | | (1,266) | | | | | | 15 | Net loss | - | | - | | - | | | - | | | - | | - | | (146,334) | | (146,334) | | | | | | 16 | Balance, December 31, 2021 | 57,695 | | $ | 577 | | 487 | | | $ | (4,764) | | $ | 615,032 | | $ | (812) | | $ | (736,028) | $ | (125,995) | | 17 | Stock-based compensation expense | - | | - | | - | | | - | | | 123,441 | | - | | - | | 123,441 | | | | | | 18 | Issuance of common stock under employee stock purchase plan | 218 | | 2 | | - | | | - | | | 11,941 | | - | | - | | 11,943 | | | | | | 19 | Vesting of restricted stock units | 1,482 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 20 | Shares withheld for employee taxes | (105) | | (1) | | - | | | - | | | (7,461) | | - | | - | | (7,462) | | | | | | 21 | Issuance of common stock upon exercise of stock options | 480 | | 5 | | - | | | - | | | 3,313 | | - | | - | | 3,318 | | | | | | 22 | Issuance of common stock in connection with conversion of convertible senior notes | - | | - | | - | | | - | | | (3) | | - | | - | | (3) | | | | | | 23 | Issuance of common stock related to acquisition | 33 | | - | | - | | | - | | | - | | - | | - | | - | | | | | | 24 | Repurchase of common stock issued in relation to acquisition | (83) | | (1) | | | | | | 1 | | | | | - | | | | | | | | | 25 | Other comprehensive income | - | | - | | - | | | - | | | - | | (599) | | - | | (599) | | | | | | 26 | Net loss | - | | - | | - | | | - | | | - | | - | | (124,717) | | (124,717) | | | | | | 27 | Balance, December 31, 2022 | 59,720 | | $ | 597 | | 487 | | | $ | (4,764) | | $ | 746,249 | | $ | (1,411) | | $ | (860,745) | $ | (120,074) | | 28 | Stock-based compensation expense | - | | - | | - | | | - | | | 107,254 | | - | | - | | 107,254 | | | | | | 29 | Issuance of common stock under employee stock purchase plan | 330 | | 3 | | - | | | - | | | 11,320 | | - | | - | | 11,323 | | | | | | 30 | Vesting of restricted stock units | 1,454 | | 15 | | - | | | - | | | (15) | | - | | - | | - | | | | | | 31 | Shares withheld for employee taxes | (113) | | (1) | | - | | | - | | | (5,569) | | - | | - | | (5,570) | | | | | | 32 | Issuance of common stock upon exercise of stock options | 216 | | 2 | | - | | | - | | | 3,051 | | - | | - | | 3,053 | | | | | | 33 | Issuance of common stock related to acquisition | 107 | | 1 | | - | | | - | | | (1) | | - | | - | | - | | | | | | 34 | Repurchase of common stock issued in related to acquisition | - | | - | | 83 | | | (1) | | | 1 | | - | | - | | - | | | | | | 35 | Purchase of capped called related to convertible senior notes | - | | - | | - | | | - | | | (36,570) | | - | | - | | (36,570) | | | | | | 36 | Reclassification of equity to derivative assets related to capped calls | - | | - | | - | | | - | | | 33,029 | | - | | - | | 33,029 | | | | | | 37 | Repurchase and inducement of convertible senior notes | - | | - | | - | | | - | | | 35,881 | | - | | - | | 35,881 | | | | | | 38 | Other comprehensive loss | - | | - | | - | | | - | | | - | | 2,755 | | - | | 2,755 | | | | | | 39 | Net loss | - | | - | | - | | | - | | | - | | - | | (149,260) | | (149,260) | | | | | | 40 | Balance, December 31, 2023 | 61,714 | | $ | 617 | | 570 | | | $ | (4,765) | | $ | 894,630 | | $ | 1,344 | | $ | (1,010,005) | $ | (118,179) | See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)| | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------|:----------|:-----|:----------|:-----|:----------|:----------|:---|:----------| | 1 | | Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows from operating activities: | | | | | | | | | | | 4 | Net loss | $ | (149,260) | | | $ | (124,717) | | $ | (146,334) | | 5 | Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization | 45,939 | | | 41,038 | | | 33,501 | | | | 7 | Amortization of debt discount and issuance costs | 4,138 | | | 4,085 | | | 3,982 | | | | 8 | Stock-based compensation expense | 108,081 | | | 119,902 | | | 102,579 | | | | 9 | Impairment of long-lived assets | 30,784 | | | - | | | - | | | | 10 | Change in fair value of derivative assets | 15,511 | | | - | | | - | | | | 11 | Deferred income taxes | (5,624) | | | (1,440) | | | 466 | | | | 12 | Induced conversion expense | 53,889 | | | - | | | 2,740 | | | | 13 | Other | 469 | | | (200) | | | 1,920 | | | | 14 | Changes in assets and liabilities: | | | | | | | | | | | 15 | Accounts receivable | (14,021) | | | (9,050) | | | (25,475) | | | | 16 | Deferred contract acquisition and fulfillment costs | (18,534) | | | (15,910) | | | (22,526) | | | | 17 | Prepaid expenses and other assets | (4,125) | | | (2,231) | | | (3,355) | | | | 18 | Accounts payable | 5,449 | | | 7,977 | | | (2,077) | | | | 19 | Accrued expenses | 2,422 | | | 3,741 | | | 19,205 | | | | 20 | Deferred revenue | 30,472 | | | 52,516 | | | 85,562 | | | | 21 | Other liabilities | (1,312) | | | 2,493 | | | 3,729 | | | | 22 | Net cash provided by operating activities | 104,278 | | | 78,204 | | | 53,917 | | | | 23 | Cash flows from investing activities: | | | | | | | | | | | 24 | Business acquisitions, net of cash acquired | (34,841) | | | - | | | (358,420) | | | | 25 | Purchases of property and equipment | (4,366) | | | (20,382) | | | (9,010) | | | | 26 | Capitalization of internal-use software | (15,878) | | | (17,145) | | | (9,854) | | | | 27 | Purchases of investments | (276,829) | | | (122,765) | | | (93,092) | | | | 28 | Sales and maturities of investments | 150,450 | | | 121,304 | | | 147,998 | | | | 29 | Other investments | 2,710 | | | (1,000) | | | (3,000) | | | | 30 | Net cash used in investing activities | (178,754) | | | (39,988) | | | (325,378) | | | | 31 | Cash flows from financing activities: | | | | | | | | | | | 32 | Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively | 292,091 | | | - | | | 585,024 | | | | 33 | Purchase of capped calls related to convertible senior notes | (36,570) | | | - | | | (76,020) | | | | 34 | Payment of debt issuance costs | - | | | (71) | | | (300) | | | | 35 | Payments for redemption, repurchase and conversion of convertible senior notes | (199,998) | | | (12) | | | (230,000) | | | | 36 | Payments related to business acquisitions | (2,250) | | | (300) | | | (12,118) | | | | 37 | Proceeds from capped calls settlement | 17,518 | | | - | | | - | | | | 38 | Taxes paid related to net share settlement of equity awards | (5,570) | | | (7,462) | | | (16,044) | | | | 39 | Proceeds from employee stock purchase plan | 11,323 | | | 11,943 | | | 9,276 | | | | 40 | Proceeds from stock option exercises | 3,053 | | | 3,318 | | | 4,315 | | | | 41 | Net cash provided by financing activities | 79,597 | | | 7,416 | | | 264,133 | | | | 42 | Effect of exchange rate changes on cash ,cash equivalents and restricted cash | 1,202 | | | (2,845) | | | (1,272) | | | | 43 | Net increase (decrease) in cash, cash equivalents and restricted cash | 6,323 | | | 42,787 | | | (8,600) | | | | 44 | Cash, cash equivalents and restricted cash, beginning of period | 207,804 | | | 165,017 | | | 173,617 | | | | 45 | Cash, cash equivalents and restricted cash, end of period | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | | 46 | Supplemental cash flow information: | | | | | | | | | | | 47 | Cash paid for interest on convertible senior notes | $ | 4,605 | | | $ | 6,675 | | $ | 7,345 | | 48 | Cash paid for income taxes, net of refunds | $ | 1,624 | | | $ | 1,571 | | $ | 3,305 | | 49 | Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 213,629 | | | $ | 207,287 | | $ | 164,582 | | 51 | Restricted cash included in prepaid expenses and other assets | 498 | | | 517 | | | 435 | | | | 52 | Total cash, cash equivalents and restricted cash | $ | 214,127 | | | $ | 207,804 | | $ | 165,017 | See accompanying notes to consolidated financial statements. 65
Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 71: FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 72: FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 73: FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 74: FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , Fortinet, Inc. 10-K form for the fiscal year ended 2023-12-31, page 75: FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 61: Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 62: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 63: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 64: Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Rapid7, Inc. 10-K form for the fiscal year ended 2023-12-31, page 65: Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
FORTINET, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3">December 31,2023</td><td colspan="3"></td><td colspan="3">December 31,2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT ASSETS:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">1,021.5 </td><td></td><td colspan="3"></td><td colspan="2">502.6 </td><td></td></tr><tr><td colspan="3">Marketable equity securities</td><td colspan="2">21.0 </td><td></td><td colspan="3"></td><td colspan="2">25.5 </td><td></td></tr><tr><td colspan="3">Accounts receivable-Net of allowance for credit losses of $8.2 million and $3.6 million at December 31, 2023 and 2022, respectively</td><td colspan="2">1,402.0 </td><td></td><td colspan="3"></td><td colspan="2">1,261.7 </td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">484.8 </td><td></td><td colspan="3"></td><td colspan="2">264.6 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">101.1 </td><td></td><td colspan="3"></td><td colspan="2">73.1 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">4,428.3 </td><td></td><td colspan="3"></td><td colspan="2">3,810.4 </td><td></td></tr><tr><td colspan="3">LONG-TERM INVESTMENTS</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45.5 </td><td></td></tr><tr><td colspan="3">PROPERTY AND EQUIPMENT-NET</td><td colspan="2">1,044.4 </td><td></td><td colspan="3"></td><td colspan="2">898.5 </td><td></td></tr><tr><td colspan="3">DEFERRED CONTRACT COSTS</td><td colspan="2">605.6 </td><td></td><td colspan="3"></td><td colspan="2">518.2 </td><td></td></tr><tr><td colspan="3">DEFERRED TAX ASSETS</td><td colspan="2">868.8 </td><td></td><td colspan="3"></td><td colspan="2">569.4 </td><td></td></tr><tr><td colspan="3">GOODWILL</td><td colspan="2">126.5 </td><td></td><td colspan="3"></td><td colspan="2">128.0 </td><td></td></tr><tr><td colspan="3">OTHER INTANGIBLE ASSETS-NET</td><td colspan="2">35.3 </td><td></td><td colspan="3"></td><td colspan="2">56.0 </td><td></td></tr><tr><td colspan="3">OTHER ASSETS</td><td colspan="2">150.0 </td><td></td><td colspan="3"></td><td colspan="2">202.0 </td><td></td></tr><tr><td colspan="3">TOTAL ASSETS</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">CURRENT LIABILITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>204.3 </td><td></td><td colspan="3"></td><td>$</td><td>243.4 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">423.7 </td><td></td><td colspan="3"></td><td colspan="2">266.3 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">242.3 </td><td></td><td colspan="3"></td><td colspan="2">219.4 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">2,848.7 </td><td></td><td colspan="3"></td><td colspan="2">2,349.3 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">3,719.0 </td><td></td><td colspan="3"></td><td colspan="2">3,078.4 </td><td></td></tr><tr><td colspan="3">DEFERRED REVENUE</td><td colspan="2">2,886.3 </td><td></td><td colspan="3"></td><td colspan="2">2,291.0 </td><td></td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="2">992.3 </td><td></td><td colspan="3"></td><td colspan="2">990.4 </td><td></td></tr><tr><td colspan="3">OTHER LIABILITIES</td><td colspan="2">124.7 </td><td></td><td colspan="3"></td><td colspan="2">149.8 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">7,722.3 </td><td></td><td colspan="3"></td><td colspan="2">6,509.6 </td><td></td></tr><tr><td colspan="3">COMMITMENTS AND CONTINGENCIES (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">STOCKHOLDERS' DEFICIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, $0.001 par value-1,500.0 shares authorized; 761.0 shares and 781.5 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">1,416.4 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(18.9)</td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,861.7)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(463.4)</td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT</td><td>$</td><td>7,258.9 </td><td></td><td colspan="3"></td><td>$</td><td>6,228.0 </td><td></td></tr></table>See notes to consolidated financial statements. 71 , FORTINET, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td>$</td><td>1,927.3 </td><td></td><td colspan="3"></td><td>$</td><td>1,780.5 </td><td></td><td colspan="3"></td><td>$</td><td>1,255.0 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">3,377.5 </td><td></td><td colspan="3"></td><td colspan="2">2,636.9 </td><td></td><td colspan="3"></td><td colspan="2">2,087.2 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="2">5,304.8 </td><td></td><td colspan="3"></td><td colspan="2">4,417.4 </td><td></td><td colspan="3"></td><td colspan="2">3,342.2 </td><td></td></tr><tr><td colspan="3">COST OF REVENUE:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">763.6 </td><td></td><td colspan="3"></td><td colspan="2">691.3 </td><td></td><td colspan="3"></td><td colspan="2">487.7 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">473.6 </td><td></td><td colspan="3"></td><td colspan="2">393.6 </td><td></td><td colspan="3"></td><td colspan="2">295.3 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="2">1,237.2 </td><td></td><td colspan="3"></td><td colspan="2">1,084.9 </td><td></td><td colspan="3"></td><td colspan="2">783.0 </td><td></td></tr><tr><td colspan="3">GROSS PROFIT:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product</td><td colspan="2">1,163.7 </td><td></td><td colspan="3"></td><td colspan="2">1,089.2 </td><td></td><td colspan="3"></td><td colspan="2">767.3 </td><td></td></tr><tr><td colspan="3">Service </td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,243.3 </td><td></td><td colspan="3"></td><td colspan="2">1,791.9 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="2">4,067.6 </td><td></td><td colspan="3"></td><td colspan="2">3,332.5 </td><td></td><td colspan="3"></td><td colspan="2">2,559.2 </td><td></td></tr><tr><td colspan="3">OPERATING EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="2">613.8 </td><td></td><td colspan="3"></td><td colspan="2">512.4 </td><td></td><td colspan="3"></td><td colspan="2">424.2 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="2">2,006.0 </td><td></td><td colspan="3"></td><td colspan="2">1,686.1 </td><td></td><td colspan="3"></td><td colspan="2">1,345.7 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">211.3 </td><td></td><td colspan="3"></td><td colspan="2">169.0 </td><td></td><td colspan="3"></td><td colspan="2">143.5 </td><td></td></tr><tr><td colspan="3">Gain on intellectual property matter</td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td><td colspan="3"></td><td colspan="2">(4.6)</td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">2,826.5 </td><td></td><td colspan="3"></td><td colspan="2">2,362.9 </td><td></td><td colspan="3"></td><td colspan="2">1,908.8 </td><td></td></tr><tr><td colspan="3">OPERATING INCOME</td><td colspan="2">1,241.1 </td><td></td><td colspan="3"></td><td colspan="2">969.6 </td><td></td><td colspan="3"></td><td colspan="2">650.4 </td><td></td></tr><tr><td colspan="3">INTEREST INCOME</td><td colspan="2">119.7 </td><td></td><td colspan="3"></td><td colspan="2">17.4 </td><td></td><td colspan="3"></td><td colspan="2">4.5 </td><td></td></tr><tr><td colspan="3">INTEREST EXPENSE</td><td colspan="2">(21.0)</td><td></td><td colspan="3"></td><td colspan="2">(18.0)</td><td></td><td colspan="3"></td><td colspan="2">(14.9)</td><td></td></tr><tr><td colspan="3">OTHER EXPENSE-NET</td><td colspan="2">(6.1)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td><td colspan="3"></td><td colspan="2">(11.6)</td><td></td></tr><tr><td colspan="3">INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">1,333.7 </td><td></td><td colspan="3"></td><td colspan="2">955.5 </td><td></td><td colspan="3"></td><td colspan="2">628.4 </td><td></td></tr><tr><td colspan="3">PROVISION FOR INCOME TAXES</td><td colspan="2">143.8 </td><td></td><td colspan="3"></td><td colspan="2">30.8 </td><td></td><td colspan="3"></td><td colspan="2">14.1 </td><td></td></tr><tr><td colspan="3">LOSS FROM EQUITY METHOD INVESTMENTS</td><td colspan="2">(42.1)</td><td></td><td colspan="3"></td><td colspan="2">(68.1)</td><td></td><td colspan="3"></td><td colspan="2">(7.6)</td><td></td></tr><tr><td colspan="3">NET INCOME INCLUDING NON-CONTROLLING INTERESTS</td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCOME ATTRIBUTABLE TO FORTINET, INC.</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>857.3 </td><td></td><td colspan="3"></td><td>$</td><td>606.8 </td><td></td></tr><tr><td colspan="3">Net income per share attributable to Fortinet, Inc. (Note 9):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>1.47 </td><td></td><td colspan="3"></td><td>$</td><td>1.08 </td><td></td><td colspan="3"></td><td>$</td><td>0.74 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>1.46 </td><td></td><td colspan="3"></td><td>$</td><td>1.06 </td><td></td><td colspan="3"></td><td>$</td><td>0.73 </td><td></td></tr><tr><td colspan="3">Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="2">778.6 </td><td></td><td colspan="3"></td><td colspan="2">791.4 </td><td></td><td colspan="3"></td><td colspan="2">816.1 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="2">788.2 </td><td></td><td colspan="3"></td><td colspan="2">805.3 </td><td></td><td colspan="3"></td><td colspan="2">835.3 </td><td></td></tr></table>See notes to consolidated financial statements. 72 , FORTINET, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in foreign currency translation</td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Change in unrealized gains (losses) on investments</td><td colspan="2">8.8 </td><td></td><td colspan="3"></td><td colspan="2">(6.2)</td><td></td><td colspan="3"></td><td colspan="2">(3.5)</td><td></td></tr><tr><td colspan="3">Less: tax provision (benefit) related to items of other comprehensive income (loss)</td><td colspan="2">2.0 </td><td></td><td colspan="3"></td><td colspan="2">(1.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.8)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">1.3 </td><td></td><td colspan="3"></td><td colspan="2">(14.5)</td><td></td><td colspan="3"></td><td colspan="2">(6.5)</td><td></td></tr><tr><td colspan="3">Comprehensive income including non-controlling interests</td><td colspan="2">1,149.1 </td><td></td><td colspan="3"></td><td colspan="2">842.1 </td><td></td><td colspan="3"></td><td colspan="2">600.2 </td><td></td></tr><tr><td colspan="3">Less: comprehensive income (loss) attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.2 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td></tr><tr><td colspan="3">Comprehensive income attributable to Fortinet, Inc.</td><td>$</td><td>1,149.1 </td><td></td><td colspan="3"></td><td>$</td><td>841.9 </td><td></td><td colspan="3"></td><td>$</td><td>601.3 </td><td></td></tr></table>See notes to consolidated financial statements. 73 , FORTINET, INC. CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2"> </td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="2">AdditionalPaid-InCapital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">AccumulatedOtherComprehensive Income (Loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulated Deficit</td><td colspan="3"></td><td colspan="3" rowspan="2">Non-Controlling Interests</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Total Equity (Deficit)</td></tr><tr><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">BALANCE-December 31, 2020</td><td colspan="2">812.7 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,206.6 </td><td></td><td colspan="3"></td><td>$</td><td>0.7 </td><td></td><td colspan="3"></td><td>$</td><td>(352.1)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>856.0 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">10.2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(141.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(12.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(722.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Recognition of non-controlling interests upon business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td><td colspan="3"></td><td colspan="2">17.8 </td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.7)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td><td colspan="3"></td><td colspan="2">(3.8)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">606.8 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="2">606.7 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2021</td><td colspan="2">810.0 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,253.6 </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(467.9)</td><td></td><td colspan="3"></td><td colspan="2">16.7 </td><td></td><td colspan="3"></td><td colspan="2">798.4 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">7.5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(134.7)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(36.0)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(55.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,935.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td></tr><tr><td colspan="3">Acquisition of the non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3.4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.5)</td><td></td></tr><tr><td colspan="3">Net unrealized loss on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.6)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.9 </td><td></td><td colspan="3"></td><td colspan="2">(9.7)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">857.3 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">856.6 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2022</td><td colspan="2">781.5 </td><td></td><td colspan="3"></td><td colspan="2">0.8 </td><td></td><td colspan="3"></td><td colspan="2">1,284.2 </td><td></td><td colspan="3"></td><td colspan="2">(20.2)</td><td></td><td colspan="3"></td><td colspan="2">(1,546.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(281.6)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with equity incentive plans - net of tax withholding</td><td colspan="2">6.7 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(68.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(27.2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(37.4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,463.1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,500.5)</td><td></td></tr><tr><td colspan="3">Excise tax on net stock repurchases</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(10.9)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">249.0 </td><td></td></tr><tr><td colspan="3">Net unrealized gain on investments - net of tax</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6.8 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5.5)</td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,147.8 </td><td></td></tr><tr><td colspan="3">BALANCE-December 31, 2023</td><td colspan="2">761.0 </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>1,416.4 </td><td></td><td colspan="3"></td><td>$</td><td>(18.9)</td><td></td><td colspan="3"></td><td>$</td><td>(1,861.7)</td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>(463.4)</td><td></td></tr></table>See notes to consolidated financial statements. 74 , FORTINET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">CASH FLOWS FROM OPERATING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income including non-controlling interests</td><td>$</td><td>1,147.8 </td><td></td><td colspan="3"></td><td>$</td><td>856.6 </td><td></td><td colspan="3"></td><td>$</td><td>606.7 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="2">249.0 </td><td></td><td colspan="3"></td><td colspan="2">217.3 </td><td></td><td colspan="3"></td><td colspan="2">207.9 </td><td></td></tr><tr><td colspan="3">Amortization of deferred contract costs</td><td colspan="2">266.3 </td><td></td><td colspan="3"></td><td colspan="2">223.3 </td><td></td><td colspan="3"></td><td colspan="2">175.9 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">113.4 </td><td></td><td colspan="3"></td><td colspan="2">104.3 </td><td></td><td colspan="3"></td><td colspan="2">84.4 </td><td></td></tr><tr><td colspan="3">Amortization of investment premiums (discounts)</td><td colspan="2">(27.7)</td><td></td><td colspan="3"></td><td colspan="2">4.4 </td><td></td><td colspan="3"></td><td colspan="2">6.9 </td><td></td></tr><tr><td colspan="3">Loss from equity method investments</td><td colspan="2">42.1 </td><td></td><td colspan="3"></td><td colspan="2">68.1 </td><td></td><td colspan="3"></td><td colspan="2">7.6 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">18.5 </td><td></td><td colspan="3"></td><td colspan="2">23.6 </td><td></td><td colspan="3"></td><td colspan="2">7.9 </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of impact of business combinations:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable-net</td><td colspan="2">(146.4)</td><td></td><td colspan="3"></td><td colspan="2">(456.7)</td><td></td><td colspan="3"></td><td colspan="2">(72.5)</td><td></td></tr><tr><td colspan="3">Inventory</td><td colspan="2">(253.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.1)</td><td></td><td colspan="3"></td><td colspan="2">(19.4)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">(27.6)</td><td></td><td colspan="3"></td><td colspan="2">(7.7)</td><td></td><td colspan="3"></td><td colspan="2">(17.7)</td><td></td></tr><tr><td colspan="3">Deferred contract costs</td><td colspan="2">(353.5)</td><td></td><td colspan="3"></td><td colspan="2">(318.2)</td><td></td><td colspan="3"></td><td colspan="2">(294.5)</td><td></td></tr><tr><td colspan="3">Deferred tax assets</td><td colspan="2">(301.9)</td><td></td><td colspan="3"></td><td colspan="2">(226.4)</td><td></td><td colspan="3"></td><td colspan="2">(94.0)</td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">17.7 </td><td></td><td colspan="3"></td><td colspan="2">(35.3)</td><td></td><td colspan="3"></td><td colspan="2">(19.0)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">(43.1)</td><td></td><td colspan="3"></td><td colspan="2">105.2 </td><td></td><td colspan="3"></td><td colspan="2">(13.1)</td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="2">137.4 </td><td></td><td colspan="3"></td><td colspan="2">55.2 </td><td></td><td colspan="3"></td><td colspan="2">49.9 </td><td></td></tr><tr><td colspan="3">Accrued payroll and compensation</td><td colspan="2">23.4 </td><td></td><td colspan="3"></td><td colspan="2">25.0 </td><td></td><td colspan="3"></td><td colspan="2">44.0 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(21.7)</td><td></td><td colspan="3"></td><td colspan="2">23.5 </td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">1,095.3 </td><td></td><td colspan="3"></td><td colspan="2">1,177.5 </td><td></td><td colspan="3"></td><td colspan="2">839.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">1,935.5 </td><td></td><td colspan="3"></td><td colspan="2">1,730.6 </td><td></td><td colspan="3"></td><td colspan="2">1,499.7 </td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM INVESTING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(1,855.8)</td><td></td><td colspan="3"></td><td colspan="2">(389.1)</td><td></td><td colspan="3"></td><td colspan="2">(2,308.0)</td><td></td></tr><tr><td colspan="3">Sales of investments</td><td colspan="2">4.0 </td><td></td><td colspan="3"></td><td colspan="2">3.0 </td><td></td><td colspan="3"></td><td colspan="2">85.5 </td><td></td></tr><tr><td colspan="3">Maturities of investments</td><td colspan="2">1,414.8 </td><td></td><td colspan="3"></td><td colspan="2">1,462.0 </td><td></td><td colspan="3"></td><td colspan="2">1,470.3 </td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(204.1)</td><td></td><td colspan="3"></td><td colspan="2">(281.2)</td><td></td><td colspan="3"></td><td colspan="2">(295.9)</td><td></td></tr><tr><td colspan="3">Purchases of Investments in privately held companies</td><td colspan="2">(8.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(160.0)</td><td></td></tr><tr><td colspan="3">Payments made in connection with business combinations, net of cash acquired</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(30.8)</td><td></td><td colspan="3"></td><td colspan="2">(74.9)</td><td></td></tr><tr><td colspan="3">Purchases of marketable equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(42.5)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">0.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">0.4 </td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) investing activities</td><td colspan="2">(649.3)</td><td></td><td colspan="3"></td><td colspan="2">763.9 </td><td></td><td colspan="3"></td><td colspan="2">(1,325.1)</td><td></td></tr><tr><td colspan="3">CASH FLOWS FROM FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from long-term borrowings, net of discount and underwriting fees</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">989.4 </td><td></td></tr><tr><td colspan="3">Payments for debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2.4)</td><td></td></tr><tr><td colspan="3">Payments of debt assumed in connection with business combination</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19.5)</td><td></td></tr><tr><td colspan="3">Repurchase and retirement of common stock</td><td colspan="2">(1,500.5)</td><td></td><td colspan="3"></td><td colspan="2">(1,991.2)</td><td></td><td colspan="3"></td><td colspan="2">(741.8)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">43.8 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">26.0 </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(112.5)</td><td></td><td colspan="3"></td><td colspan="2">(160.4)</td><td></td><td colspan="3"></td><td colspan="2">(167.9)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">(1.2)</td><td></td><td colspan="3"></td><td colspan="2">(4.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.0)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="2">(1,570.4)</td><td></td><td colspan="3"></td><td colspan="2">(2,130.3)</td><td></td><td colspan="3"></td><td colspan="2">82.8 </td><td></td></tr><tr><td colspan="3">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</td><td colspan="2">(0.8)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td></tr><tr><td colspan="3">NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td colspan="2">(285.0)</td><td></td><td colspan="3"></td><td colspan="2">363.8 </td><td></td><td colspan="3"></td><td colspan="2">257.3 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-Beginning of year</td><td colspan="2">1,682.9 </td><td></td><td colspan="3"></td><td colspan="2">1,319.1 </td><td></td><td colspan="3"></td><td colspan="2">1,061.8 </td><td></td></tr><tr><td colspan="3">CASH AND CASH EQUIVALENTS-End of year</td><td>$</td><td>1,397.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,682.9 </td><td></td><td colspan="3"></td><td>$</td><td>1,319.1 </td><td></td></tr><tr><td colspan="3">SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for income taxes-net</td><td>$</td><td>426.3 </td><td></td><td colspan="3"></td><td>$</td><td>260.2 </td><td></td><td colspan="3"></td><td>$</td><td>127.4 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities arising from obtaining right-of-use assets</td><td>$</td><td>19.2 </td><td></td><td colspan="3"></td><td>$</td><td>65.8 </td><td></td><td colspan="3"></td><td>$</td><td>39.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NON-CASH INVESTING AND FINANCING ACTIVITIES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Transfers of evaluation units from inventory to property and equipment</td><td>$</td><td>31.8 </td><td></td><td colspan="3"></td><td>$</td><td>17.1 </td><td></td><td colspan="3"></td><td>$</td><td>15.9 </td><td></td></tr><tr><td colspan="3">Liability for purchase of property and equipment</td><td>$</td><td>23.6 </td><td></td><td colspan="3"></td><td>$</td><td>21.2 </td><td></td><td colspan="3"></td><td>$</td><td>21.9 </td><td></td></tr><tr><td colspan="3">Excise tax payable on net stock repurchases</td><td>$</td><td>10.9 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Liability incurred in connection with business combinations</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>0.8 </td><td></td><td colspan="3"></td><td>$</td><td>0.9 </td><td></td></tr></table>See notes to consolidated financial statements. 75 , Table of Contents RAPID7, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3">December 31, 2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td></tr><tr><td colspan="3">Short-term investments</td><td colspan="2">169,544 </td><td></td><td colspan="3"></td><td colspan="2">84,162 </td><td></td></tr><tr><td colspan="3">Accounts receivable, net of allowance for credit losses of $951 and $2,299 at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">164,862 </td><td></td><td colspan="3"></td><td colspan="2">152,045 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, current portion</td><td colspan="2">45,008 </td><td></td><td colspan="3"></td><td colspan="2">34,906 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="2">41,407 </td><td></td><td colspan="3"></td><td colspan="2">31,907 </td><td></td></tr><tr><td colspan="3">Total current assets</td><td colspan="2">634,450 </td><td></td><td colspan="3"></td><td colspan="2">510,307 </td><td></td></tr><tr><td colspan="3">Long-term investments</td><td colspan="2">56,171 </td><td></td><td colspan="3"></td><td colspan="2">9,756 </td><td></td></tr><tr><td colspan="3">Property and equipment, net</td><td colspan="2">39,642 </td><td></td><td colspan="3"></td><td colspan="2">57,891 </td><td></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">54,693 </td><td></td><td colspan="3"></td><td colspan="2">79,342 </td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs, non-current portion</td><td colspan="2">76,601 </td><td></td><td colspan="3"></td><td colspan="2">68,169 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">536,351 </td><td></td><td colspan="3"></td><td colspan="2">515,631 </td><td></td></tr><tr><td colspan="3">Intangible assets, net</td><td colspan="2">94,546 </td><td></td><td colspan="3"></td><td colspan="2">101,269 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">12,894 </td><td></td><td colspan="3"></td><td colspan="2">16,626 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity (Deficit)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>15,812 </td><td></td><td colspan="3"></td><td>$</td><td>10,255 </td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">84,489 </td><td></td><td colspan="3"></td><td colspan="2">80,306 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, current portion</td><td colspan="2">13,452 </td><td></td><td colspan="3"></td><td colspan="2">12,444 </td><td></td></tr><tr><td colspan="3">Deferred revenue, current portion</td><td colspan="2">455,503 </td><td></td><td colspan="3"></td><td colspan="2">426,599 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">536 </td><td></td><td colspan="3"></td><td colspan="2">1,663 </td><td></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="2">569,792 </td><td></td><td colspan="3"></td><td colspan="2">531,267 </td><td></td></tr><tr><td colspan="3">Convertible senior notes, net</td><td colspan="2">929,996 </td><td></td><td colspan="3"></td><td colspan="2">815,948 </td><td></td></tr><tr><td colspan="3">Operating lease liabilities, non-current portion</td><td colspan="2">81,130 </td><td></td><td colspan="3"></td><td colspan="2">85,946 </td><td></td></tr><tr><td colspan="3">Deferred revenue, non-current portion</td><td colspan="2">32,577 </td><td></td><td colspan="3"></td><td colspan="2">31,040 </td><td></td></tr><tr><td colspan="3">Other long-term liabilities</td><td colspan="2">10,032 </td><td></td><td colspan="3"></td><td colspan="2">14,864 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>1,623,527 </td><td></td><td colspan="3"></td><td>$</td><td>1,479,065 </td><td></td></tr><tr><td colspan="3">Stockholders' deficit:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2023 and 2022; 0 shares issued and outstanding at December 31, 2023 and 2022</td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td></tr><tr><td colspan="3">Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2023 and 2022; 62,283,630 and 60,206,277 shares issued at December 31, 2023 and 2022, respectively; 61,714,051 and 59,719,469 shares outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">617 </td><td></td><td colspan="3"></td><td colspan="2">597 </td><td></td></tr><tr><td colspan="3">Treasury stock, at cost, 569,579 and 486,808 shares at December 31, 2023 and December 31, 2022, respectively</td><td colspan="2">(4,765)</td><td></td><td colspan="3"></td><td colspan="2">(4,764)</td><td></td></tr><tr><td colspan="3">Additional paid-in-capital</td><td colspan="2">894,630 </td><td></td><td colspan="3"></td><td colspan="2">746,249 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive (loss) income</td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">(1,411)</td><td></td></tr><tr><td colspan="3">Accumulated deficit</td><td colspan="2">(1,010,005)</td><td></td><td colspan="3"></td><td colspan="2">(860,745)</td><td></td></tr><tr><td colspan="3">Total stockholders' deficit</td><td colspan="2">(118,179)</td><td></td><td colspan="3"></td><td colspan="2">(120,074)</td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' deficit</td><td>$</td><td>1,505,348 </td><td></td><td colspan="3"></td><td>$</td><td>1,358,991 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 61 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>740,168 </td><td></td><td colspan="3"></td><td>$</td><td>647,535 </td><td></td><td colspan="3"></td><td>$</td><td>500,843 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37,539 </td><td></td><td colspan="3"></td><td colspan="2">37,548 </td><td></td><td colspan="3"></td><td colspan="2">34,561 </td><td></td></tr><tr><td colspan="3">Total revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">777,707 </td><td></td><td colspan="3"></td><td colspan="2">685,083 </td><td></td><td colspan="3"></td><td colspan="2">535,404 </td><td></td></tr><tr><td colspan="3">Cost of revenue:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Products</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">202,904 </td><td></td><td colspan="3"></td><td colspan="2">182,212 </td><td></td><td colspan="3"></td><td colspan="2">140,773 </td><td></td></tr><tr><td colspan="3">Professional services</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">28,837 </td><td></td><td colspan="3"></td><td colspan="2">32,137 </td><td></td><td colspan="3"></td><td colspan="2">28,175 </td><td></td></tr><tr><td colspan="3">Total cost of revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">231,741 </td><td></td><td colspan="3"></td><td colspan="2">214,349 </td><td></td><td colspan="3"></td><td colspan="2">168,948 </td><td></td></tr><tr><td colspan="3">Total gross profit</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">545,966 </td><td></td><td colspan="3"></td><td colspan="2">470,734 </td><td></td><td colspan="3"></td><td colspan="2">366,456 </td><td></td></tr><tr><td colspan="3">Operating expenses:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Research and development</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">176,776 </td><td></td><td colspan="3"></td><td colspan="2">189,970 </td><td></td><td colspan="3"></td><td colspan="2">160,779 </td><td></td></tr><tr><td colspan="3">Sales and marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">312,636 </td><td></td><td colspan="3"></td><td colspan="2">307,409 </td><td></td><td colspan="3"></td><td colspan="2">247,453 </td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">84,276 </td><td></td><td colspan="3"></td><td colspan="2">84,969 </td><td></td><td colspan="3"></td><td colspan="2">78,289 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Restructuring</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">626,699 </td><td></td><td colspan="3"></td><td colspan="2">582,348 </td><td></td><td colspan="3"></td><td colspan="2">486,521 </td><td></td></tr><tr><td colspan="3">Loss from operations</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(80,733)</td><td></td><td colspan="3"></td><td colspan="2">(111,614)</td><td></td><td colspan="3"></td><td colspan="2">(120,065)</td><td></td></tr><tr><td colspan="3">Other income (expense), net:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,177 </td><td></td><td colspan="3"></td><td colspan="2">1,813 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(64,700)</td><td></td><td colspan="3"></td><td colspan="2">(10,982)</td><td></td><td colspan="3"></td><td colspan="2">(14,292)</td><td></td></tr><tr><td colspan="3">Other income (expense), net</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(14,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,522)</td><td></td><td colspan="3"></td><td colspan="2">(1,921)</td><td></td></tr><tr><td colspan="3">Loss before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(149,778)</td><td></td><td colspan="3"></td><td colspan="2">(122,305)</td><td></td><td colspan="3"></td><td colspan="2">(135,913)</td><td></td></tr><tr><td colspan="3">(Benefit from) provision for income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(518)</td><td></td><td colspan="3"></td><td colspan="2">2,412 </td><td></td><td colspan="3"></td><td colspan="2">10,421 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Net loss per share, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(2.46)</td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>(2.65)</td><td></td></tr><tr><td colspan="3">Weighted-average common shares outstanding, basic and diluted</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">60,756,087 </td><td></td><td colspan="3"></td><td colspan="2">58,552,065 </td><td></td><td colspan="3"></td><td colspan="2">55,270,998 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 62 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)<table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">797 </td><td></td><td colspan="3"></td><td colspan="2">(3,874)</td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Adjustment for net losses realized on cash flow hedges and included in net loss, net of taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">724 </td><td></td><td colspan="3"></td><td colspan="2">4,053 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on cash flow hedges</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,521 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">(86)</td><td></td></tr><tr><td colspan="3">Change unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,043)</td><td></td></tr><tr><td colspan="3">Adjustment for net gains realized and included in net loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(137)</td><td></td></tr><tr><td colspan="3">Total change in unrealized gains (losses) on investments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="2">(778)</td><td></td><td colspan="3"></td><td colspan="2">(1,180)</td><td></td></tr><tr><td colspan="3">Total other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Comprehensive loss</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>(146,505)</td><td></td><td colspan="3"></td><td>$</td><td>(125,316)</td><td></td><td colspan="3"></td><td>$</td><td>(147,600)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 63 , Table of Contents RAPID7, INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">Common stock</td><td colspan="3"></td><td colspan="9">Treasury stock</td><td colspan="3"></td><td colspan="3" rowspan="2">Additionalpaid-in-capital</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulatedothercomprehensiveincome (loss)</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Accumulateddeficit</td><td colspan="3" rowspan="2"></td><td colspan="3" rowspan="2">Totalstockholders'equity (deficit)</td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td></tr><tr><td colspan="3">Balance, December 31, 2020</td><td colspan="2">52,225 </td><td></td><td colspan="3"></td><td>$</td><td>522 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>692,603 </td><td></td><td colspan="3"></td><td>$</td><td>454 </td><td></td><td colspan="3"></td><td>$</td><td>(617,279)</td><td></td><td colspan="3"></td><td>$</td><td>71,536 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">100,317 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">222 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,274 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,611 </td><td></td><td colspan="3"></td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(157)</td><td></td><td colspan="3"></td><td colspan="2">(2)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,042)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">521 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,306 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">2,897 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,094)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,065)</td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with inducement of convertible senior notes</td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">341 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Cumulative-effect adjustment for the adoption of ASU 2020-06</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(99,026)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">27,585 </td><td></td><td colspan="3"></td><td colspan="2">(71,441)</td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,266)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td><td colspan="3"></td><td colspan="2">(146,334)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2021</td><td colspan="2">57,695 </td><td></td><td colspan="3"></td><td>$</td><td>577 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>615,032 </td><td></td><td colspan="3"></td><td>$</td><td>(812)</td><td></td><td colspan="3"></td><td>$</td><td>(736,028)</td><td></td><td colspan="3"></td><td>$</td><td>(125,995)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">123,441 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">218 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,941 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,482 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,461)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">480 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,313 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td></tr><tr><td colspan="3">Issuance of common stock in connection with conversion of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">33 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in relation to acquisition</td><td colspan="2">(83)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(599)</td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td><td colspan="3"></td><td colspan="2">(124,717)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2022</td><td colspan="2">59,720 </td><td></td><td colspan="3"></td><td>$</td><td>597 </td><td></td><td colspan="3"></td><td colspan="2">487 </td><td></td><td colspan="3"></td><td>$</td><td>(4,764)</td><td></td><td colspan="3"></td><td>$</td><td>746,249 </td><td></td><td colspan="3"></td><td>$</td><td>(1,411)</td><td></td><td colspan="3"></td><td>$</td><td>(860,745)</td><td></td><td colspan="3"></td><td>$</td><td>(120,074)</td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107,254 </td><td></td></tr><tr><td colspan="3">Issuance of common stock under employee stock purchase plan</td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,320 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11,323 </td><td></td></tr><tr><td colspan="3">Vesting of restricted stock units</td><td colspan="2">1,454 </td><td></td><td colspan="3"></td><td colspan="2">15 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Shares withheld for employee taxes</td><td colspan="2">(113)</td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5,570)</td><td></td></tr><tr><td colspan="3">Issuance of common stock upon exercise of stock options</td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,051 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3,053 </td><td></td></tr><tr><td colspan="3">Issuance of common stock related to acquisition</td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Repurchase of common stock issued in related to acquisition</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="3"></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of capped called related to convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(36,570)</td><td></td></tr><tr><td colspan="3">Reclassification of equity to derivative assets related to capped calls</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">33,029 </td><td></td></tr><tr><td colspan="3">Repurchase and inducement of convertible senior notes</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">35,881 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,755 </td><td></td></tr><tr><td colspan="3">Net loss</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td><td colspan="3"></td><td colspan="2">(149,260)</td><td></td></tr><tr><td colspan="3">Balance, December 31, 2023</td><td colspan="2">61,714 </td><td></td><td colspan="3"></td><td>$</td><td>617 </td><td></td><td colspan="3"></td><td colspan="2">570 </td><td></td><td colspan="3"></td><td>$</td><td>(4,765)</td><td></td><td colspan="3"></td><td>$</td><td>894,630 </td><td></td><td colspan="3"></td><td>$</td><td>1,344 </td><td></td><td colspan="3"></td><td>$</td><td>(1,010,005)</td><td></td><td colspan="3"></td><td>$</td><td>(118,179)</td><td></td></tr></table>See accompanying notes to consolidated financial statements. 64 , Table of Contents RAPID7, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows from operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net loss</td><td>$</td><td>(149,260)</td><td></td><td colspan="3"></td><td>$</td><td>(124,717)</td><td></td><td colspan="3"></td><td>$</td><td>(146,334)</td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net loss to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">45,939 </td><td></td><td colspan="3"></td><td colspan="2">41,038 </td><td></td><td colspan="3"></td><td colspan="2">33,501 </td><td></td></tr><tr><td colspan="3">Amortization of debt discount and issuance costs</td><td colspan="2">4,138 </td><td></td><td colspan="3"></td><td colspan="2">4,085 </td><td></td><td colspan="3"></td><td colspan="2">3,982 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">108,081 </td><td></td><td colspan="3"></td><td colspan="2">119,902 </td><td></td><td colspan="3"></td><td colspan="2">102,579 </td><td></td></tr><tr><td colspan="3">Impairment of long-lived assets</td><td colspan="2">30,784 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Change in fair value of derivative assets</td><td colspan="2">15,511 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(5,624)</td><td></td><td colspan="3"></td><td colspan="2">(1,440)</td><td></td><td colspan="3"></td><td colspan="2">466 </td><td></td></tr><tr><td colspan="3">Induced conversion expense</td><td colspan="2">53,889 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,740 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">469 </td><td></td><td colspan="3"></td><td colspan="2">(200)</td><td></td><td colspan="3"></td><td colspan="2">1,920 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts receivable</td><td colspan="2">(14,021)</td><td></td><td colspan="3"></td><td colspan="2">(9,050)</td><td></td><td colspan="3"></td><td colspan="2">(25,475)</td><td></td></tr><tr><td colspan="3">Deferred contract acquisition and fulfillment costs</td><td colspan="2">(18,534)</td><td></td><td colspan="3"></td><td colspan="2">(15,910)</td><td></td><td colspan="3"></td><td colspan="2">(22,526)</td><td></td></tr><tr><td colspan="3">Prepaid expenses and other assets</td><td colspan="2">(4,125)</td><td></td><td colspan="3"></td><td colspan="2">(2,231)</td><td></td><td colspan="3"></td><td colspan="2">(3,355)</td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="2">5,449 </td><td></td><td colspan="3"></td><td colspan="2">7,977 </td><td></td><td colspan="3"></td><td colspan="2">(2,077)</td><td></td></tr><tr><td colspan="3">Accrued expenses</td><td colspan="2">2,422 </td><td></td><td colspan="3"></td><td colspan="2">3,741 </td><td></td><td colspan="3"></td><td colspan="2">19,205 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">30,472 </td><td></td><td colspan="3"></td><td colspan="2">52,516 </td><td></td><td colspan="3"></td><td colspan="2">85,562 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">(1,312)</td><td></td><td colspan="3"></td><td colspan="2">2,493 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">104,278 </td><td></td><td colspan="3"></td><td colspan="2">78,204 </td><td></td><td colspan="3"></td><td colspan="2">53,917 </td><td></td></tr><tr><td colspan="3">Cash flows from investing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Business acquisitions, net of cash acquired</td><td colspan="2">(34,841)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(358,420)</td><td></td></tr><tr><td colspan="3">Purchases of property and equipment</td><td colspan="2">(4,366)</td><td></td><td colspan="3"></td><td colspan="2">(20,382)</td><td></td><td colspan="3"></td><td colspan="2">(9,010)</td><td></td></tr><tr><td colspan="3">Capitalization of internal-use software</td><td colspan="2">(15,878)</td><td></td><td colspan="3"></td><td colspan="2">(17,145)</td><td></td><td colspan="3"></td><td colspan="2">(9,854)</td><td></td></tr><tr><td colspan="3">Purchases of investments</td><td colspan="2">(276,829)</td><td></td><td colspan="3"></td><td colspan="2">(122,765)</td><td></td><td colspan="3"></td><td colspan="2">(93,092)</td><td></td></tr><tr><td colspan="3">Sales and maturities of investments</td><td colspan="2">150,450 </td><td></td><td colspan="3"></td><td colspan="2">121,304 </td><td></td><td colspan="3"></td><td colspan="2">147,998 </td><td></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">2,710 </td><td></td><td colspan="3"></td><td colspan="2">(1,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(178,754)</td><td></td><td colspan="3"></td><td colspan="2">(39,988)</td><td></td><td colspan="3"></td><td colspan="2">(325,378)</td><td></td></tr><tr><td colspan="3">Cash flows from financing activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Proceeds from issuance of convertible senior notes, net of issuance costs of $7,909 and $14,976 for the years ended December 31, 2023 and 2021, respectively</td><td colspan="2">292,091 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">585,024 </td><td></td></tr><tr><td colspan="3">Purchase of capped calls related to convertible senior notes</td><td colspan="2">(36,570)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(76,020)</td><td></td></tr><tr><td colspan="3">Payment of debt issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td></tr><tr><td colspan="3">Payments for redemption, repurchase and conversion of convertible senior notes</td><td colspan="2">(199,998)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">(230,000)</td><td></td></tr><tr><td colspan="3">Payments related to business acquisitions</td><td colspan="2">(2,250)</td><td></td><td colspan="3"></td><td colspan="2">(300)</td><td></td><td colspan="3"></td><td colspan="2">(12,118)</td><td></td></tr><tr><td colspan="3">Proceeds from capped calls settlement</td><td colspan="2">17,518 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Taxes paid related to net share settlement of equity awards</td><td colspan="2">(5,570)</td><td></td><td colspan="3"></td><td colspan="2">(7,462)</td><td></td><td colspan="3"></td><td colspan="2">(16,044)</td><td></td></tr><tr><td colspan="3">Proceeds from employee stock purchase plan</td><td colspan="2">11,323 </td><td></td><td colspan="3"></td><td colspan="2">11,943 </td><td></td><td colspan="3"></td><td colspan="2">9,276 </td><td></td></tr><tr><td colspan="3">Proceeds from stock option exercises</td><td colspan="2">3,053 </td><td></td><td colspan="3"></td><td colspan="2">3,318 </td><td></td><td colspan="3"></td><td colspan="2">4,315 </td><td></td></tr><tr><td colspan="3">Net cash provided by financing activities</td><td colspan="2">79,597 </td><td></td><td colspan="3"></td><td colspan="2">7,416 </td><td></td><td colspan="3"></td><td colspan="2">264,133 </td><td></td></tr><tr><td colspan="3">Effect of exchange rate changes on cash ,cash equivalents and restricted cash</td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">(2,845)</td><td></td><td colspan="3"></td><td colspan="2">(1,272)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">6,323 </td><td></td><td colspan="3"></td><td colspan="2">42,787 </td><td></td><td colspan="3"></td><td colspan="2">(8,600)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, beginning of period</td><td colspan="2">207,804 </td><td></td><td colspan="3"></td><td colspan="2">165,017 </td><td></td><td colspan="3"></td><td colspan="2">173,617 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, end of period</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr><tr><td colspan="3">Supplemental cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid for interest on convertible senior notes</td><td>$</td><td>4,605 </td><td></td><td colspan="3"></td><td>$</td><td>6,675 </td><td></td><td colspan="3"></td><td>$</td><td>7,345 </td><td></td></tr><tr><td colspan="3">Cash paid for income taxes, net of refunds</td><td>$</td><td>1,624 </td><td></td><td colspan="3"></td><td>$</td><td>1,571 </td><td></td><td colspan="3"></td><td>$</td><td>3,305 </td><td></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>213,629 </td><td></td><td colspan="3"></td><td>$</td><td>207,287 </td><td></td><td colspan="3"></td><td>$</td><td>164,582 </td><td></td></tr><tr><td colspan="3">Restricted cash included in prepaid expenses and other assets</td><td colspan="2">498 </td><td></td><td colspan="3"></td><td colspan="2">517 </td><td></td><td colspan="3"></td><td colspan="2">435 </td><td></td></tr><tr><td colspan="3">Total cash, cash equivalents and restricted cash</td><td>$</td><td>214,127 </td><td></td><td colspan="3"></td><td>$</td><td>207,804 </td><td></td><td colspan="3"></td><td>$</td><td>165,017 </td><td></td></tr></table>See accompanying notes to consolidated financial statements. 65
q_com058
Compare the net income of Simon Property Group and Vornado Realty Trust for the year 2023.
In 2023, Simon Property Group reported a consolidated net income of $2,617,018,000. In contrast, Vornado Realty Trust reported a net income of $32,888,000. This significant difference highlights that Simon Property Group had a much higher profitability compared to Vornado Realty Trust in 2023.
Comparison
86,87,88,89;63,64
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
q_com059
Compare the total revenue of Simon Property Group and Vornado Realty Trust for the year 2023.
In 2023, Simon Property Group generated a total revenue of $5,658,836,000, while Vornado Realty Trust reported total revenues of $1,811,163,000. Simon Property Group's revenue was significantly higher than that of Vornado Realty Trust. This difference indicates that Simon Property Group had a more substantial income from its operations, which could be due to a larger portfolio of properties, higher rental rates, or more diversified income streams. The higher revenue for Simon Property Group suggests a stronger market position and potentially better asset utilization compared to Vornado Realty Trust.
Comparison
86,87,88,89;63,64
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
q_com060
Compare the operating income before other items for Simon Property Group and Vornado Realty Trust for the year 2023.
In 2023, Simon Property Group reported an operating income before other items of $2,807,022,000. On the other hand, Vornado Realty Trust's operating income before other items was not explicitly stated in the provided content. Hence, we will calculate it as EBIT - earnings before interetst and tax - > (1,811,163- 1,565,167) in thousand = 245,996,000. Hence Simon Property group's operating income is much higher.
Comparison
86,87,88,89;63,64
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
q_com061
Compare the total liabilities of Simon Property Group and Vornado Realty Trust as of December 31, 2023.
As of December 31, 2023, Simon Property Group had total liabilities amounting to $30,595,897,000. In contrast, Vornado Realty Trust reported total liabilities of $9,843,931,000. Simon Property Group's total liabilities were significantly higher than those of Vornado Realty Trust. This substantial difference indicates that Simon Property Group has a larger debt and obligation load, which could be due to its extensive operations and larger scale of business. The higher liabilities for Simon Property Group suggest a more leveraged financial structure, which could provide opportunities for growth but also pose risks if not managed effectively.
Comparison
86,87,88,89;73,74
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 73: VORNADO REALTY L.P. CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:-------------------|:-----------|:-----|:------------|:---|:-----------| | 1 | (Amounts in thousands, except unit amounts) | As of December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | ASSETS | | | | | | | | 4 | Real estate, at cost: | | | | | | | | 5 | Land | $ | 2,436,221 | | | $ | 2,451,828 | | 6 | Buildings and improvements | 9,952,954 | | | 9,804,204 | | | | 7 | Development costs and construction in progress | 1,281,076 | | | 933,334 | | | | 9 | Leasehold improvements and equipment | 130,953 | | | 125,389 | | | | 10 | Total | 13,801,204 | | | 13,314,755 | | | | 11 | Less accumulated depreciation and amortization | (3,752,827) | | | (3,470,991) | | | | 12 | Real estate, net | 10,048,377 | | | 9,843,764 | | | | 13 | Right-of-use assets | 680,044 | | | 684,380 | | | | 14 | Cash and cash equivalents | 997,002 | | | 889,689 | | | | 15 | Restricted cash | 264,582 | | | 131,468 | | | | 16 | Investments in U.S. Treasury bills | - | | | 471,962 | | | | 17 | Tenant and other receivables | 69,543 | | | 81,170 | | | | 18 | Investments in partially owned entities | 2,610,558 | | | 2,665,073 | | | | 20 | 220 Central Park South condominium units ready for sale | 35,941 | | | 43,599 | | | | 21 | Receivable arising from the straight-lining of rents | 701,666 | | | 694,972 | | | | 22 | Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395 | 355,010 | | | 373,555 | | | | 23 | Identified intangible assets, net of accumulated amortization of $98,589 and $98,139 | 127,082 | | | 139,638 | | | | 24 | Other assets | 297,860 | | | 474,105 | | | | 25 | | $ | 16,187,665 | | | $ | 16,493,375 | | 26 | LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | | | 27 | Mortgages payable, net | $ | 5,688,020 | | | $ | 5,829,018 | | 28 | Senior unsecured notes, net | 1,193,873 | | | 1,191,832 | | | | 29 | Unsecured term loan, net | 794,559 | | | 793,193 | | | | 30 | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | | 31 | Lease liabilities | 732,859 | | | 735,969 | | | | 34 | Accounts payable and accrued expenses | 411,044 | | | 450,881 | | | | 35 | Deferred revenue | 32,199 | | | 39,882 | | | | 36 | Deferred compensation plan | 105,245 | | | 96,322 | | | | 37 | Other liabilities | 311,132 | | | 268,166 | | | | 38 | Total liabilities | 9,843,931 | | | 9,980,263 | | | | 39 | Commitments and contingencies | | | | | | | | 40 | Redeemable noncontrolling interests: | | | | | | | | 41 | Class A units - 17,000,030 and 14,416,891 units outstanding | 480,251 | | | 345,157 | | | | 42 | Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | | | 3,535 | | | | 43 | Total redeemable noncontrolling partnership units | 483,786 | | | 348,692 | | | | 44 | Redeemable noncontrolling interest in a consolidated subsidiary | 154,662 | | | 88,040 | | | | 45 | Total redeemable noncontrolling interests | 638,448 | | | 436,732 | | | | 46 | Partners' equity: | | | | | | | | 47 | Partners' capital | 9,453,344 | | | 9,559,341 | | | | 48 | Earnings less than distributions | (4,009,395) | | | (3,894,580) | | | | 49 | Accumulated other comprehensive income | 65,115 | | | 174,967 | | | | 50 | Total partners' equity | 5,509,064 | | | 5,839,728 | | | | 51 | Noncontrolling interests in consolidated subsidiaries | 196,222 | | | 236,652 | | | | 52 | Total equity | 5,705,286 | | | 6,076,380 | | | | 53 | | $ | 16,187,665 | | | $ | 16,493,375 | See notes to the consolidated financial statements. 73 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 74: VORNADO REALTY L.P. CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per unit amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 25 | Net income (loss) attributable to Vornado Realty L.P. | 108,855 | | | (376,875) | | | 183,539 | | | | 26 | Preferred unit distributions | (62,231) | | | (62,231) | | | (66,035) | | | | 27 | Series K preferred unit issuance costs | - | | | - | | | (9,033) | | | | 28 | NET INCOME (LOSS) attributable to Class A unitholders | $ | 46,624 | | | $ | (439,106) | | $ | 108,471 | | 34 | INCOME (LOSS) PER CLASS A UNIT - BASIC: | | | | | | | | | | | 35 | Net income (loss) per Class A unit | $ | 0.22 | | | $ | (2.15) | | $ | 0.52 | | 36 | Weighted average units outstanding | 205,105 | | | 205,315 | | | 204,728 | | | | 38 | INCOME (LOSS) PER CLASS A UNIT - DILUTED: | | | | | | | | | | | 39 | Net income (loss) per Class A unit | $ | 0.22 | | | $ | (2.15) | | $ | 0.51 | | 40 | Weighted average units outstanding | 205,956 | | | 205,315 | | | 205,644 | | | See notes to consolidated financial statements. 74
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY L.P. CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:-------------------------------------------------------------------------------------|:-------------------|:-----------|:-----|:------------|:---|:-----------| | 1 | (Amounts in thousands, except unit amounts) | As of December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | ASSETS | | | | | | | | 4 | Real estate, at cost: | | | | | | | | 5 | Land | $ | 2,436,221 | | | $ | 2,451,828 | | 6 | Buildings and improvements | 9,952,954 | | | 9,804,204 | | | | 7 | Development costs and construction in progress | 1,281,076 | | | 933,334 | | | | 9 | Leasehold improvements and equipment | 130,953 | | | 125,389 | | | | 10 | Total | 13,801,204 | | | 13,314,755 | | | | 11 | Less accumulated depreciation and amortization | (3,752,827) | | | (3,470,991) | | | | 12 | Real estate, net | 10,048,377 | | | 9,843,764 | | | | 13 | Right-of-use assets | 680,044 | | | 684,380 | | | | 14 | Cash and cash equivalents | 997,002 | | | 889,689 | | | | 15 | Restricted cash | 264,582 | | | 131,468 | | | | 16 | Investments in U.S. Treasury bills | - | | | 471,962 | | | | 17 | Tenant and other receivables | 69,543 | | | 81,170 | | | | 18 | Investments in partially owned entities | 2,610,558 | | | 2,665,073 | | | | 20 | 220 Central Park South condominium units ready for sale | 35,941 | | | 43,599 | | | | 21 | Receivable arising from the straight-lining of rents | 701,666 | | | 694,972 | | | | 22 | Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395 | 355,010 | | | 373,555 | | | | 23 | Identified intangible assets, net of accumulated amortization of $98,589 and $98,139 | 127,082 | | | 139,638 | | | | 24 | Other assets | 297,860 | | | 474,105 | | | | 25 | | $ | 16,187,665 | | | $ | 16,493,375 | | 26 | LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | | | 27 | Mortgages payable, net | $ | 5,688,020 | | | $ | 5,829,018 | | 28 | Senior unsecured notes, net | 1,193,873 | | | 1,191,832 | | | | 29 | Unsecured term loan, net | 794,559 | | | 793,193 | | | | 30 | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | | 31 | Lease liabilities | 732,859 | | | 735,969 | | | | 34 | Accounts payable and accrued expenses | 411,044 | | | 450,881 | | | | 35 | Deferred revenue | 32,199 | | | 39,882 | | | | 36 | Deferred compensation plan | 105,245 | | | 96,322 | | | | 37 | Other liabilities | 311,132 | | | 268,166 | | | | 38 | Total liabilities | 9,843,931 | | | 9,980,263 | | | | 39 | Commitments and contingencies | | | | | | | | 40 | Redeemable noncontrolling interests: | | | | | | | | 41 | Class A units - 17,000,030 and 14,416,891 units outstanding | 480,251 | | | 345,157 | | | | 42 | Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | | | 3,535 | | | | 43 | Total redeemable noncontrolling partnership units | 483,786 | | | 348,692 | | | | 44 | Redeemable noncontrolling interest in a consolidated subsidiary | 154,662 | | | 88,040 | | | | 45 | Total redeemable noncontrolling interests | 638,448 | | | 436,732 | | | | 46 | Partners' equity: | | | | | | | | 47 | Partners' capital | 9,453,344 | | | 9,559,341 | | | | 48 | Earnings less than distributions | (4,009,395) | | | (3,894,580) | | | | 49 | Accumulated other comprehensive income | 65,115 | | | 174,967 | | | | 50 | Total partners' equity | 5,509,064 | | | 5,839,728 | | | | 51 | Noncontrolling interests in consolidated subsidiaries | 196,222 | | | 236,652 | | | | 52 | Total equity | 5,705,286 | | | 6,076,380 | | | | 53 | | $ | 16,187,665 | | | $ | 16,493,375 | See notes to the consolidated financial statements. 73 , VORNADO REALTY L.P. CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per unit amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 25 | Net income (loss) attributable to Vornado Realty L.P. | 108,855 | | | (376,875) | | | 183,539 | | | | 26 | Preferred unit distributions | (62,231) | | | (62,231) | | | (66,035) | | | | 27 | Series K preferred unit issuance costs | - | | | - | | | (9,033) | | | | 28 | NET INCOME (LOSS) attributable to Class A unitholders | $ | 46,624 | | | $ | (439,106) | | $ | 108,471 | | 34 | INCOME (LOSS) PER CLASS A UNIT - BASIC: | | | | | | | | | | | 35 | Net income (loss) per Class A unit | $ | 0.22 | | | $ | (2.15) | | $ | 0.52 | | 36 | Weighted average units outstanding | 205,105 | | | 205,315 | | | 204,728 | | | | 38 | INCOME (LOSS) PER CLASS A UNIT - DILUTED: | | | | | | | | | | | 39 | Net income (loss) per Class A unit | $ | 0.22 | | | $ | (2.15) | | $ | 0.51 | | 40 | Weighted average units outstanding | 205,956 | | | 205,315 | | | 205,644 | | | See notes to consolidated financial statements. 74
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 73: VORNADO REALTY L.P. CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except unit amounts)</td><td colspan="9">As of December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Real estate, at cost:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land</td><td>$</td><td>2,436,221 </td><td></td><td colspan="3"></td><td>$</td><td>2,451,828 </td><td></td></tr><tr><td colspan="3">Buildings and improvements</td><td colspan="2">9,952,954 </td><td></td><td colspan="3"></td><td colspan="2">9,804,204 </td><td></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">1,281,076 </td><td></td><td colspan="3"></td><td colspan="2">933,334 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Leasehold improvements and equipment</td><td colspan="2">130,953 </td><td></td><td colspan="3"></td><td colspan="2">125,389 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="2">13,801,204 </td><td></td><td colspan="3"></td><td colspan="2">13,314,755 </td><td></td></tr><tr><td colspan="3">Less accumulated depreciation and amortization</td><td colspan="2">(3,752,827)</td><td></td><td colspan="3"></td><td colspan="2">(3,470,991)</td><td></td></tr><tr><td colspan="3">Real estate, net</td><td colspan="2">10,048,377 </td><td></td><td colspan="3"></td><td colspan="2">9,843,764 </td><td></td></tr><tr><td colspan="3">Right-of-use assets</td><td colspan="2">680,044 </td><td></td><td colspan="3"></td><td colspan="2">684,380 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="2">997,002 </td><td></td><td colspan="3"></td><td colspan="2">889,689 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">264,582 </td><td></td><td colspan="3"></td><td colspan="2">131,468 </td><td></td></tr><tr><td colspan="3">Investments in U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">471,962 </td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">69,543 </td><td></td><td colspan="3"></td><td colspan="2">81,170 </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">2,610,558 </td><td></td><td colspan="3"></td><td colspan="2">2,665,073 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">220 Central Park South condominium units ready for sale</td><td colspan="2">35,941 </td><td></td><td colspan="3"></td><td colspan="2">43,599 </td><td></td></tr><tr><td colspan="3">Receivable arising from the straight-lining of rents </td><td colspan="2">701,666 </td><td></td><td colspan="3"></td><td colspan="2">694,972 </td><td></td></tr><tr><td colspan="3">Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395</td><td colspan="2">355,010 </td><td></td><td colspan="3"></td><td colspan="2">373,555 </td><td></td></tr><tr><td colspan="3">Identified intangible assets, net of accumulated amortization of $98,589 and $98,139</td><td colspan="2">127,082 </td><td></td><td colspan="3"></td><td colspan="2">139,638 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">297,860 </td><td></td><td colspan="3"></td><td colspan="2">474,105 </td><td></td></tr><tr><td colspan="3"></td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3">LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgages payable, net</td><td>$</td><td>5,688,020 </td><td></td><td colspan="3"></td><td>$</td><td>5,829,018 </td><td></td></tr><tr><td colspan="3">Senior unsecured notes, net</td><td colspan="2">1,193,873 </td><td></td><td colspan="3"></td><td colspan="2">1,191,832 </td><td></td></tr><tr><td colspan="3">Unsecured term loan, net</td><td colspan="2">794,559 </td><td></td><td colspan="3"></td><td colspan="2">793,193 </td><td></td></tr><tr><td colspan="3">Unsecured revolving credit facilities</td><td colspan="2">575,000 </td><td></td><td colspan="3"></td><td colspan="2">575,000 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">732,859 </td><td></td><td colspan="3"></td><td colspan="2">735,969 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">411,044 </td><td></td><td colspan="3"></td><td colspan="2">450,881 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">32,199 </td><td></td><td colspan="3"></td><td colspan="2">39,882 </td><td></td></tr><tr><td colspan="3">Deferred compensation plan</td><td colspan="2">105,245 </td><td></td><td colspan="3"></td><td colspan="2">96,322 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">311,132 </td><td></td><td colspan="3"></td><td colspan="2">268,166 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">9,843,931 </td><td></td><td colspan="3"></td><td colspan="2">9,980,263 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Class A units - 17,000,030 and 14,416,891 units outstanding</td><td colspan="2">480,251 </td><td></td><td colspan="3"></td><td colspan="2">345,157 </td><td></td></tr><tr><td colspan="3">Series D cumulative redeemable preferred units - 141,400 units outstanding</td><td colspan="2">3,535 </td><td></td><td colspan="3"></td><td colspan="2">3,535 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling partnership units</td><td colspan="2">483,786 </td><td></td><td colspan="3"></td><td colspan="2">348,692 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest in a consolidated subsidiary</td><td colspan="2">154,662 </td><td></td><td colspan="3"></td><td colspan="2">88,040 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling interests</td><td colspan="2">638,448 </td><td></td><td colspan="3"></td><td colspan="2">436,732 </td><td></td></tr><tr><td colspan="3">Partners' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Partners' capital</td><td colspan="2">9,453,344 </td><td></td><td colspan="3"></td><td colspan="2">9,559,341 </td><td></td></tr><tr><td colspan="3">Earnings less than distributions</td><td colspan="2">(4,009,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,894,580)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income </td><td colspan="2">65,115 </td><td></td><td colspan="3"></td><td colspan="2">174,967 </td><td></td></tr><tr><td colspan="3">Total partners' equity</td><td colspan="2">5,509,064 </td><td></td><td colspan="3"></td><td colspan="2">5,839,728 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in consolidated subsidiaries</td><td colspan="2">196,222 </td><td></td><td colspan="3"></td><td colspan="2">236,652 </td><td></td></tr><tr><td colspan="3">Total equity</td><td colspan="2">5,705,286 </td><td></td><td colspan="3"></td><td colspan="2">6,076,380 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>See notes to the consolidated financial statements. 73 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 74: VORNADO REALTY L.P. CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per unit amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado Realty L.P.</td><td colspan="2">108,855 </td><td></td><td colspan="3"></td><td colspan="2">(376,875)</td><td></td><td colspan="3"></td><td colspan="2">183,539 </td><td></td></tr><tr><td colspan="3">Preferred unit distributions</td><td colspan="2">(62,231)</td><td></td><td colspan="3"></td><td colspan="2">(62,231)</td><td></td><td colspan="3"></td><td colspan="2">(66,035)</td><td></td></tr><tr><td colspan="3">Series K preferred unit issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to Class A unitholders</td><td>$</td><td>46,624 </td><td></td><td colspan="3"></td><td>$</td><td>(439,106)</td><td></td><td colspan="3"></td><td>$</td><td>108,471 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER CLASS A UNIT - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per Class A unit</td><td>$</td><td>0.22 </td><td></td><td colspan="3"></td><td>$</td><td>(2.15)</td><td></td><td colspan="3"></td><td>$</td><td>0.52 </td><td></td></tr><tr><td colspan="3">Weighted average units outstanding</td><td colspan="2">205,105 </td><td></td><td colspan="3"></td><td colspan="2">205,315 </td><td></td><td colspan="3"></td><td colspan="2">204,728 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER CLASS A UNIT - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per Class A unit</td><td>$</td><td>0.22 </td><td></td><td colspan="3"></td><td>$</td><td>(2.15)</td><td></td><td colspan="3"></td><td>$</td><td>0.51 </td><td></td></tr><tr><td colspan="3">Weighted average units outstanding</td><td colspan="2">205,956 </td><td></td><td colspan="3"></td><td colspan="2">205,315 </td><td></td><td colspan="3"></td><td colspan="2">205,644 </td><td></td></tr></table>See notes to consolidated financial statements. 74
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY L.P. CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except unit amounts)</td><td colspan="9">As of December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Real estate, at cost:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land</td><td>$</td><td>2,436,221 </td><td></td><td colspan="3"></td><td>$</td><td>2,451,828 </td><td></td></tr><tr><td colspan="3">Buildings and improvements</td><td colspan="2">9,952,954 </td><td></td><td colspan="3"></td><td colspan="2">9,804,204 </td><td></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">1,281,076 </td><td></td><td colspan="3"></td><td colspan="2">933,334 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Leasehold improvements and equipment</td><td colspan="2">130,953 </td><td></td><td colspan="3"></td><td colspan="2">125,389 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="2">13,801,204 </td><td></td><td colspan="3"></td><td colspan="2">13,314,755 </td><td></td></tr><tr><td colspan="3">Less accumulated depreciation and amortization</td><td colspan="2">(3,752,827)</td><td></td><td colspan="3"></td><td colspan="2">(3,470,991)</td><td></td></tr><tr><td colspan="3">Real estate, net</td><td colspan="2">10,048,377 </td><td></td><td colspan="3"></td><td colspan="2">9,843,764 </td><td></td></tr><tr><td colspan="3">Right-of-use assets</td><td colspan="2">680,044 </td><td></td><td colspan="3"></td><td colspan="2">684,380 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="2">997,002 </td><td></td><td colspan="3"></td><td colspan="2">889,689 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">264,582 </td><td></td><td colspan="3"></td><td colspan="2">131,468 </td><td></td></tr><tr><td colspan="3">Investments in U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">471,962 </td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">69,543 </td><td></td><td colspan="3"></td><td colspan="2">81,170 </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">2,610,558 </td><td></td><td colspan="3"></td><td colspan="2">2,665,073 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">220 Central Park South condominium units ready for sale</td><td colspan="2">35,941 </td><td></td><td colspan="3"></td><td colspan="2">43,599 </td><td></td></tr><tr><td colspan="3">Receivable arising from the straight-lining of rents </td><td colspan="2">701,666 </td><td></td><td colspan="3"></td><td colspan="2">694,972 </td><td></td></tr><tr><td colspan="3">Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395</td><td colspan="2">355,010 </td><td></td><td colspan="3"></td><td colspan="2">373,555 </td><td></td></tr><tr><td colspan="3">Identified intangible assets, net of accumulated amortization of $98,589 and $98,139</td><td colspan="2">127,082 </td><td></td><td colspan="3"></td><td colspan="2">139,638 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">297,860 </td><td></td><td colspan="3"></td><td colspan="2">474,105 </td><td></td></tr><tr><td colspan="3"></td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3">LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgages payable, net</td><td>$</td><td>5,688,020 </td><td></td><td colspan="3"></td><td>$</td><td>5,829,018 </td><td></td></tr><tr><td colspan="3">Senior unsecured notes, net</td><td colspan="2">1,193,873 </td><td></td><td colspan="3"></td><td colspan="2">1,191,832 </td><td></td></tr><tr><td colspan="3">Unsecured term loan, net</td><td colspan="2">794,559 </td><td></td><td colspan="3"></td><td colspan="2">793,193 </td><td></td></tr><tr><td colspan="3">Unsecured revolving credit facilities</td><td colspan="2">575,000 </td><td></td><td colspan="3"></td><td colspan="2">575,000 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">732,859 </td><td></td><td colspan="3"></td><td colspan="2">735,969 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">411,044 </td><td></td><td colspan="3"></td><td colspan="2">450,881 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">32,199 </td><td></td><td colspan="3"></td><td colspan="2">39,882 </td><td></td></tr><tr><td colspan="3">Deferred compensation plan</td><td colspan="2">105,245 </td><td></td><td colspan="3"></td><td colspan="2">96,322 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">311,132 </td><td></td><td colspan="3"></td><td colspan="2">268,166 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">9,843,931 </td><td></td><td colspan="3"></td><td colspan="2">9,980,263 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Class A units - 17,000,030 and 14,416,891 units outstanding</td><td colspan="2">480,251 </td><td></td><td colspan="3"></td><td colspan="2">345,157 </td><td></td></tr><tr><td colspan="3">Series D cumulative redeemable preferred units - 141,400 units outstanding</td><td colspan="2">3,535 </td><td></td><td colspan="3"></td><td colspan="2">3,535 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling partnership units</td><td colspan="2">483,786 </td><td></td><td colspan="3"></td><td colspan="2">348,692 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest in a consolidated subsidiary</td><td colspan="2">154,662 </td><td></td><td colspan="3"></td><td colspan="2">88,040 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling interests</td><td colspan="2">638,448 </td><td></td><td colspan="3"></td><td colspan="2">436,732 </td><td></td></tr><tr><td colspan="3">Partners' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Partners' capital</td><td colspan="2">9,453,344 </td><td></td><td colspan="3"></td><td colspan="2">9,559,341 </td><td></td></tr><tr><td colspan="3">Earnings less than distributions</td><td colspan="2">(4,009,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,894,580)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income </td><td colspan="2">65,115 </td><td></td><td colspan="3"></td><td colspan="2">174,967 </td><td></td></tr><tr><td colspan="3">Total partners' equity</td><td colspan="2">5,509,064 </td><td></td><td colspan="3"></td><td colspan="2">5,839,728 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in consolidated subsidiaries</td><td colspan="2">196,222 </td><td></td><td colspan="3"></td><td colspan="2">236,652 </td><td></td></tr><tr><td colspan="3">Total equity</td><td colspan="2">5,705,286 </td><td></td><td colspan="3"></td><td colspan="2">6,076,380 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>See notes to the consolidated financial statements. 73 , VORNADO REALTY L.P. CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per unit amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado Realty L.P.</td><td colspan="2">108,855 </td><td></td><td colspan="3"></td><td colspan="2">(376,875)</td><td></td><td colspan="3"></td><td colspan="2">183,539 </td><td></td></tr><tr><td colspan="3">Preferred unit distributions</td><td colspan="2">(62,231)</td><td></td><td colspan="3"></td><td colspan="2">(62,231)</td><td></td><td colspan="3"></td><td colspan="2">(66,035)</td><td></td></tr><tr><td colspan="3">Series K preferred unit issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to Class A unitholders</td><td>$</td><td>46,624 </td><td></td><td colspan="3"></td><td>$</td><td>(439,106)</td><td></td><td colspan="3"></td><td>$</td><td>108,471 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER CLASS A UNIT - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per Class A unit</td><td>$</td><td>0.22 </td><td></td><td colspan="3"></td><td>$</td><td>(2.15)</td><td></td><td colspan="3"></td><td>$</td><td>0.52 </td><td></td></tr><tr><td colspan="3">Weighted average units outstanding</td><td colspan="2">205,105 </td><td></td><td colspan="3"></td><td colspan="2">205,315 </td><td></td><td colspan="3"></td><td colspan="2">204,728 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER CLASS A UNIT - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per Class A unit</td><td>$</td><td>0.22 </td><td></td><td colspan="3"></td><td>$</td><td>(2.15)</td><td></td><td colspan="3"></td><td>$</td><td>0.51 </td><td></td></tr><tr><td colspan="3">Weighted average units outstanding</td><td colspan="2">205,956 </td><td></td><td colspan="3"></td><td colspan="2">205,315 </td><td></td><td colspan="3"></td><td colspan="2">205,644 </td><td></td></tr></table>See notes to consolidated financial statements. 74
q_com062
Compare the cash and cash equivalents of Simon Property Group and Vornado Realty Trust as of December 31, 2023.
As of December 31, 2023, Simon Property Group had cash and cash equivalents totaling $1,168,991,000. Vornado Realty Trust, on the other hand, had cash and cash equivalents amounting to $997,002,000. Simon Property Group's cash and cash equivalents were higher than those of Vornado Realty Trust. This higher cash reserve indicates that Simon Property Group had more liquidity available at the end of the year, which could be used for various purposes such as meeting short-term obligations, investing in new opportunities, or returning value to shareholders. The higher cash balance for Simon Property Group suggests better liquidity management compared to Vornado Realty Trust.
Comparison
86,87,88,89;68
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 68: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------|:-------|:-----|:------------|:-----|:----------|:----------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash Flows from Operating Activities: | | | | | | | | | | | 4 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 5 | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization (including amortization of deferred financing costs) | 457,574 | | | 526,306 | | | 432,594 | | | | 7 | Distributions of income from partially owned entities | 172,873 | | | 184,501 | | | 214,521 | | | | 8 | Net gains on disposition of wholly owned and partially owned assets | (71,199) | | | (100,625) | | | (50,770) | | | | 9 | Real estate impairment losses | 45,007 | | | 19,098 | | | 7,880 | | | | 10 | Stock-based compensation expense | 43,201 | | | 29,249 | | | 38,329 | | | | 11 | Equity in net (income) loss of partially owned entities | (38,689) | | | 461,351 | | | (130,517) | | | | 12 | Change in deferred tax liability | 17,020 | | | 14,005 | | | 11,243 | | | | 13 | Amortization of interest rate cap premiums | 10,989 | | | 430 | | | 11 | | | | 14 | Straight-lining of rents | (8,808) | | | (46,177) | | | 8,644 | | | | 15 | Credit losses on investments | 8,269 | | | - | | | - | | | | 16 | Amortization of below-market leases, net | (5,268) | | | (5,178) | | | (9,249) | | | | 17 | Net realized and unrealized (gain) loss on real estate fund investments | (1,861) | | | 2,589 | | | (4,621) | | | | 18 | Return of capital from real estate fund investments | 1,861 | | | 5,141 | | | 5,104 | | | | 19 | Write-off of lease receivables deemed uncollectible | 1,008 | | | 872 | | | 7,695 | | | | 20 | Defeasance cost in connection with refinancing of mortgage payable | - | | | - | | | 23,729 | | | | 21 | Other non-cash adjustments | 8,866 | | | 2,660 | | | (3,886) | | | | 22 | Changes in operating assets and liabilities: | | | | | | | | | | | 23 | Real estate fund investments | - | | | - | | | (4,474) | | | | 24 | Tenant and other receivables | 9,379 | | | (4,437) | | | (187) | | | | 25 | Prepaid assets | (12,854) | | | 104,186 | | | 30,466 | | | | 26 | Other assets | (79,110) | | | (34,615) | | | (54,716) | | | | 27 | Lease liabilities | 17,582 | | | 15,658 | | | (4,091) | | | | 28 | Accounts payable and accrued expenses | 10,723 | | | 5,718 | | | 35,856 | | | | 29 | Other liabilities | 28,701 | | | 824 | | | 692 | | | | 30 | Net cash provided by operating activities | 648,152 | | | 798,944 | | | 761,806 | | | | 32 | Cash Flows from Investing Activities: | | | | | | | | | | | 33 | Development costs and construction in progress | (552,701) | | | (737,999) | | | (585,940) | | | | 34 | Proceeds from maturities of U.S. Treasury bills | 468,598 | | | 597,499 | | | - | | | | 35 | Additions to real estate | (211,899) | | | (159,796) | | | (149,461) | | | | 36 | Proceeds from sales of real estate | 123,519 | | | 373,264 | | | 100,024 | | | | 37 | Proceeds from repayment of participation in 150 West 34th Street mortgage loan | 105,000 | | | - | | | - | | | | 38 | Investments in partially owned entities | (57,297) | | | (33,172) | | | (14,997) | | | | 39 | Acquisitions of real estate and other | (33,145) | | | (3,000) | | | (3,000) | | | | 40 | Proceeds from sale of condominium units at 220 Central Park South | 24,484 | | | 88,019 | | | 137,404 | | | | 41 | Distributions of capital from partially owned entities | 18,869 | | | 34,417 | | | 106,005 | | | | 42 | Deconsolidation of cash and restricted cash held by a previously consolidated entity | (14,216) | | | - | | | - | | | | 43 | Purchase of U.S. Treasury bills | - | | | (1,066,096) | | | - | | | | 44 | Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition) | - | | | - | | | (123,936) | | | | 45 | Proceeds from repayments of loans receivable | - | | | - | | | 1,554 | | | | 46 | Net cash used in investing activities | (128,788) | | | (906,864) | | | (532,347) | | | See notes to consolidated financial statements. 68
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------|:-------|:-----|:------------|:-----|:----------|:----------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash Flows from Operating Activities: | | | | | | | | | | | 4 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 5 | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | 6 | Depreciation and amortization (including amortization of deferred financing costs) | 457,574 | | | 526,306 | | | 432,594 | | | | 7 | Distributions of income from partially owned entities | 172,873 | | | 184,501 | | | 214,521 | | | | 8 | Net gains on disposition of wholly owned and partially owned assets | (71,199) | | | (100,625) | | | (50,770) | | | | 9 | Real estate impairment losses | 45,007 | | | 19,098 | | | 7,880 | | | | 10 | Stock-based compensation expense | 43,201 | | | 29,249 | | | 38,329 | | | | 11 | Equity in net (income) loss of partially owned entities | (38,689) | | | 461,351 | | | (130,517) | | | | 12 | Change in deferred tax liability | 17,020 | | | 14,005 | | | 11,243 | | | | 13 | Amortization of interest rate cap premiums | 10,989 | | | 430 | | | 11 | | | | 14 | Straight-lining of rents | (8,808) | | | (46,177) | | | 8,644 | | | | 15 | Credit losses on investments | 8,269 | | | - | | | - | | | | 16 | Amortization of below-market leases, net | (5,268) | | | (5,178) | | | (9,249) | | | | 17 | Net realized and unrealized (gain) loss on real estate fund investments | (1,861) | | | 2,589 | | | (4,621) | | | | 18 | Return of capital from real estate fund investments | 1,861 | | | 5,141 | | | 5,104 | | | | 19 | Write-off of lease receivables deemed uncollectible | 1,008 | | | 872 | | | 7,695 | | | | 20 | Defeasance cost in connection with refinancing of mortgage payable | - | | | - | | | 23,729 | | | | 21 | Other non-cash adjustments | 8,866 | | | 2,660 | | | (3,886) | | | | 22 | Changes in operating assets and liabilities: | | | | | | | | | | | 23 | Real estate fund investments | - | | | - | | | (4,474) | | | | 24 | Tenant and other receivables | 9,379 | | | (4,437) | | | (187) | | | | 25 | Prepaid assets | (12,854) | | | 104,186 | | | 30,466 | | | | 26 | Other assets | (79,110) | | | (34,615) | | | (54,716) | | | | 27 | Lease liabilities | 17,582 | | | 15,658 | | | (4,091) | | | | 28 | Accounts payable and accrued expenses | 10,723 | | | 5,718 | | | 35,856 | | | | 29 | Other liabilities | 28,701 | | | 824 | | | 692 | | | | 30 | Net cash provided by operating activities | 648,152 | | | 798,944 | | | 761,806 | | | | 32 | Cash Flows from Investing Activities: | | | | | | | | | | | 33 | Development costs and construction in progress | (552,701) | | | (737,999) | | | (585,940) | | | | 34 | Proceeds from maturities of U.S. Treasury bills | 468,598 | | | 597,499 | | | - | | | | 35 | Additions to real estate | (211,899) | | | (159,796) | | | (149,461) | | | | 36 | Proceeds from sales of real estate | 123,519 | | | 373,264 | | | 100,024 | | | | 37 | Proceeds from repayment of participation in 150 West 34th Street mortgage loan | 105,000 | | | - | | | - | | | | 38 | Investments in partially owned entities | (57,297) | | | (33,172) | | | (14,997) | | | | 39 | Acquisitions of real estate and other | (33,145) | | | (3,000) | | | (3,000) | | | | 40 | Proceeds from sale of condominium units at 220 Central Park South | 24,484 | | | 88,019 | | | 137,404 | | | | 41 | Distributions of capital from partially owned entities | 18,869 | | | 34,417 | | | 106,005 | | | | 42 | Deconsolidation of cash and restricted cash held by a previously consolidated entity | (14,216) | | | - | | | - | | | | 43 | Purchase of U.S. Treasury bills | - | | | (1,066,096) | | | - | | | | 44 | Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition) | - | | | - | | | (123,936) | | | | 45 | Proceeds from repayments of loans receivable | - | | | - | | | 1,554 | | | | 46 | Net cash used in investing activities | (128,788) | | | (906,864) | | | (532,347) | | | See notes to consolidated financial statements. 68
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 68: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income (loss) to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization (including amortization of deferred financing costs)</td><td colspan="2">457,574 </td><td></td><td colspan="3"></td><td colspan="2">526,306 </td><td></td><td colspan="3"></td><td colspan="2">432,594 </td><td></td></tr><tr><td colspan="3">Distributions of income from partially owned entities</td><td colspan="2">172,873 </td><td></td><td colspan="3"></td><td colspan="2">184,501 </td><td></td><td colspan="3"></td><td colspan="2">214,521 </td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">(71,199)</td><td></td><td colspan="3"></td><td colspan="2">(100,625)</td><td></td><td colspan="3"></td><td colspan="2">(50,770)</td><td></td></tr><tr><td colspan="3">Real estate impairment losses</td><td colspan="2">45,007 </td><td></td><td colspan="3"></td><td colspan="2">19,098 </td><td></td><td colspan="3"></td><td colspan="2">7,880 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">43,201 </td><td></td><td colspan="3"></td><td colspan="2">29,249 </td><td></td><td colspan="3"></td><td colspan="2">38,329 </td><td></td></tr><tr><td colspan="3">Equity in net (income) loss of partially owned entities</td><td colspan="2">(38,689)</td><td></td><td colspan="3"></td><td colspan="2">461,351 </td><td></td><td colspan="3"></td><td colspan="2">(130,517)</td><td></td></tr><tr><td colspan="3">Change in deferred tax liability</td><td colspan="2">17,020 </td><td></td><td colspan="3"></td><td colspan="2">14,005 </td><td></td><td colspan="3"></td><td colspan="2">11,243 </td><td></td></tr><tr><td colspan="3">Amortization of interest rate cap premiums</td><td colspan="2">10,989 </td><td></td><td colspan="3"></td><td colspan="2">430 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Straight-lining of rents</td><td colspan="2">(8,808)</td><td></td><td colspan="3"></td><td colspan="2">(46,177)</td><td></td><td colspan="3"></td><td colspan="2">8,644 </td><td></td></tr><tr><td colspan="3">Credit losses on investments</td><td colspan="2">8,269 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Amortization of below-market leases, net</td><td colspan="2">(5,268)</td><td></td><td colspan="3"></td><td colspan="2">(5,178)</td><td></td><td colspan="3"></td><td colspan="2">(9,249)</td><td></td></tr><tr><td colspan="3">Net realized and unrealized (gain) loss on real estate fund investments</td><td colspan="2">(1,861)</td><td></td><td colspan="3"></td><td colspan="2">2,589 </td><td></td><td colspan="3"></td><td colspan="2">(4,621)</td><td></td></tr><tr><td colspan="3">Return of capital from real estate fund investments</td><td colspan="2">1,861 </td><td></td><td colspan="3"></td><td colspan="2">5,141 </td><td></td><td colspan="3"></td><td colspan="2">5,104 </td><td></td></tr><tr><td colspan="3">Write-off of lease receivables deemed uncollectible</td><td colspan="2">1,008 </td><td></td><td colspan="3"></td><td colspan="2">872 </td><td></td><td colspan="3"></td><td colspan="2">7,695 </td><td></td></tr><tr><td colspan="3">Defeasance cost in connection with refinancing of mortgage payable</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">23,729 </td><td></td></tr><tr><td colspan="3">Other non-cash adjustments</td><td colspan="2">8,866 </td><td></td><td colspan="3"></td><td colspan="2">2,660 </td><td></td><td colspan="3"></td><td colspan="2">(3,886)</td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Real estate fund investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4,474)</td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">9,379 </td><td></td><td colspan="3"></td><td colspan="2">(4,437)</td><td></td><td colspan="3"></td><td colspan="2">(187)</td><td></td></tr><tr><td colspan="3">Prepaid assets</td><td colspan="2">(12,854)</td><td></td><td colspan="3"></td><td colspan="2">104,186 </td><td></td><td colspan="3"></td><td colspan="2">30,466 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">(79,110)</td><td></td><td colspan="3"></td><td colspan="2">(34,615)</td><td></td><td colspan="3"></td><td colspan="2">(54,716)</td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">17,582 </td><td></td><td colspan="3"></td><td colspan="2">15,658 </td><td></td><td colspan="3"></td><td colspan="2">(4,091)</td><td></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">10,723 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">35,856 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">28,701 </td><td></td><td colspan="3"></td><td colspan="2">824 </td><td></td><td colspan="3"></td><td colspan="2">692 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">648,152 </td><td></td><td colspan="3"></td><td colspan="2">798,944 </td><td></td><td colspan="3"></td><td colspan="2">761,806 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash Flows from Investing Activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">(552,701)</td><td></td><td colspan="3"></td><td colspan="2">(737,999)</td><td></td><td colspan="3"></td><td colspan="2">(585,940)</td><td></td></tr><tr><td colspan="3">Proceeds from maturities of U.S. Treasury bills </td><td colspan="2">468,598 </td><td></td><td colspan="3"></td><td colspan="2">597,499 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Additions to real estate</td><td colspan="2">(211,899)</td><td></td><td colspan="3"></td><td colspan="2">(159,796)</td><td></td><td colspan="3"></td><td colspan="2">(149,461)</td><td></td></tr><tr><td colspan="3">Proceeds from sales of real estate</td><td colspan="2">123,519 </td><td></td><td colspan="3"></td><td colspan="2">373,264 </td><td></td><td colspan="3"></td><td colspan="2">100,024 </td><td></td></tr><tr><td colspan="3">Proceeds from repayment of participation in 150 West 34th Street mortgage loan</td><td colspan="2">105,000 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">(57,297)</td><td></td><td colspan="3"></td><td colspan="2">(33,172)</td><td></td><td colspan="3"></td><td colspan="2">(14,997)</td><td></td></tr><tr><td colspan="3">Acquisitions of real estate and other</td><td colspan="2">(33,145)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of condominium units at 220 Central Park South</td><td colspan="2">24,484 </td><td></td><td colspan="3"></td><td colspan="2">88,019 </td><td></td><td colspan="3"></td><td colspan="2">137,404 </td><td></td></tr><tr><td colspan="3">Distributions of capital from partially owned entities</td><td colspan="2">18,869 </td><td></td><td colspan="3"></td><td colspan="2">34,417 </td><td></td><td colspan="3"></td><td colspan="2">106,005 </td><td></td></tr><tr><td colspan="3">Deconsolidation of cash and restricted cash held by a previously consolidated entity</td><td colspan="2">(14,216)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,066,096)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(123,936)</td><td></td></tr><tr><td colspan="3">Proceeds from repayments of loans receivable</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(128,788)</td><td></td><td colspan="3"></td><td colspan="2">(906,864)</td><td></td><td colspan="3"></td><td colspan="2">(532,347)</td><td></td></tr></table>See notes to consolidated financial statements. 68
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income (loss) to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Depreciation and amortization (including amortization of deferred financing costs)</td><td colspan="2">457,574 </td><td></td><td colspan="3"></td><td colspan="2">526,306 </td><td></td><td colspan="3"></td><td colspan="2">432,594 </td><td></td></tr><tr><td colspan="3">Distributions of income from partially owned entities</td><td colspan="2">172,873 </td><td></td><td colspan="3"></td><td colspan="2">184,501 </td><td></td><td colspan="3"></td><td colspan="2">214,521 </td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">(71,199)</td><td></td><td colspan="3"></td><td colspan="2">(100,625)</td><td></td><td colspan="3"></td><td colspan="2">(50,770)</td><td></td></tr><tr><td colspan="3">Real estate impairment losses</td><td colspan="2">45,007 </td><td></td><td colspan="3"></td><td colspan="2">19,098 </td><td></td><td colspan="3"></td><td colspan="2">7,880 </td><td></td></tr><tr><td colspan="3">Stock-based compensation expense</td><td colspan="2">43,201 </td><td></td><td colspan="3"></td><td colspan="2">29,249 </td><td></td><td colspan="3"></td><td colspan="2">38,329 </td><td></td></tr><tr><td colspan="3">Equity in net (income) loss of partially owned entities</td><td colspan="2">(38,689)</td><td></td><td colspan="3"></td><td colspan="2">461,351 </td><td></td><td colspan="3"></td><td colspan="2">(130,517)</td><td></td></tr><tr><td colspan="3">Change in deferred tax liability</td><td colspan="2">17,020 </td><td></td><td colspan="3"></td><td colspan="2">14,005 </td><td></td><td colspan="3"></td><td colspan="2">11,243 </td><td></td></tr><tr><td colspan="3">Amortization of interest rate cap premiums</td><td colspan="2">10,989 </td><td></td><td colspan="3"></td><td colspan="2">430 </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Straight-lining of rents</td><td colspan="2">(8,808)</td><td></td><td colspan="3"></td><td colspan="2">(46,177)</td><td></td><td colspan="3"></td><td colspan="2">8,644 </td><td></td></tr><tr><td colspan="3">Credit losses on investments</td><td colspan="2">8,269 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Amortization of below-market leases, net</td><td colspan="2">(5,268)</td><td></td><td colspan="3"></td><td colspan="2">(5,178)</td><td></td><td colspan="3"></td><td colspan="2">(9,249)</td><td></td></tr><tr><td colspan="3">Net realized and unrealized (gain) loss on real estate fund investments</td><td colspan="2">(1,861)</td><td></td><td colspan="3"></td><td colspan="2">2,589 </td><td></td><td colspan="3"></td><td colspan="2">(4,621)</td><td></td></tr><tr><td colspan="3">Return of capital from real estate fund investments</td><td colspan="2">1,861 </td><td></td><td colspan="3"></td><td colspan="2">5,141 </td><td></td><td colspan="3"></td><td colspan="2">5,104 </td><td></td></tr><tr><td colspan="3">Write-off of lease receivables deemed uncollectible</td><td colspan="2">1,008 </td><td></td><td colspan="3"></td><td colspan="2">872 </td><td></td><td colspan="3"></td><td colspan="2">7,695 </td><td></td></tr><tr><td colspan="3">Defeasance cost in connection with refinancing of mortgage payable</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">23,729 </td><td></td></tr><tr><td colspan="3">Other non-cash adjustments</td><td colspan="2">8,866 </td><td></td><td colspan="3"></td><td colspan="2">2,660 </td><td></td><td colspan="3"></td><td colspan="2">(3,886)</td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Real estate fund investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4,474)</td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">9,379 </td><td></td><td colspan="3"></td><td colspan="2">(4,437)</td><td></td><td colspan="3"></td><td colspan="2">(187)</td><td></td></tr><tr><td colspan="3">Prepaid assets</td><td colspan="2">(12,854)</td><td></td><td colspan="3"></td><td colspan="2">104,186 </td><td></td><td colspan="3"></td><td colspan="2">30,466 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">(79,110)</td><td></td><td colspan="3"></td><td colspan="2">(34,615)</td><td></td><td colspan="3"></td><td colspan="2">(54,716)</td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">17,582 </td><td></td><td colspan="3"></td><td colspan="2">15,658 </td><td></td><td colspan="3"></td><td colspan="2">(4,091)</td><td></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">10,723 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">35,856 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">28,701 </td><td></td><td colspan="3"></td><td colspan="2">824 </td><td></td><td colspan="3"></td><td colspan="2">692 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">648,152 </td><td></td><td colspan="3"></td><td colspan="2">798,944 </td><td></td><td colspan="3"></td><td colspan="2">761,806 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash Flows from Investing Activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">(552,701)</td><td></td><td colspan="3"></td><td colspan="2">(737,999)</td><td></td><td colspan="3"></td><td colspan="2">(585,940)</td><td></td></tr><tr><td colspan="3">Proceeds from maturities of U.S. Treasury bills </td><td colspan="2">468,598 </td><td></td><td colspan="3"></td><td colspan="2">597,499 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Additions to real estate</td><td colspan="2">(211,899)</td><td></td><td colspan="3"></td><td colspan="2">(159,796)</td><td></td><td colspan="3"></td><td colspan="2">(149,461)</td><td></td></tr><tr><td colspan="3">Proceeds from sales of real estate</td><td colspan="2">123,519 </td><td></td><td colspan="3"></td><td colspan="2">373,264 </td><td></td><td colspan="3"></td><td colspan="2">100,024 </td><td></td></tr><tr><td colspan="3">Proceeds from repayment of participation in 150 West 34th Street mortgage loan</td><td colspan="2">105,000 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">(57,297)</td><td></td><td colspan="3"></td><td colspan="2">(33,172)</td><td></td><td colspan="3"></td><td colspan="2">(14,997)</td><td></td></tr><tr><td colspan="3">Acquisitions of real estate and other</td><td colspan="2">(33,145)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td><td colspan="3"></td><td colspan="2">(3,000)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of condominium units at 220 Central Park South</td><td colspan="2">24,484 </td><td></td><td colspan="3"></td><td colspan="2">88,019 </td><td></td><td colspan="3"></td><td colspan="2">137,404 </td><td></td></tr><tr><td colspan="3">Distributions of capital from partially owned entities</td><td colspan="2">18,869 </td><td></td><td colspan="3"></td><td colspan="2">34,417 </td><td></td><td colspan="3"></td><td colspan="2">106,005 </td><td></td></tr><tr><td colspan="3">Deconsolidation of cash and restricted cash held by a previously consolidated entity</td><td colspan="2">(14,216)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchase of U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,066,096)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Acquisition of additional 45.0% ownership interest in One Park Avenue (inclusive of $5,806 of prorations and net working capital and net of $39,370 of cash and restricted cash balances consolidated upon acquisition)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(123,936)</td><td></td></tr><tr><td colspan="3">Proceeds from repayments of loans receivable</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="2">(128,788)</td><td></td><td colspan="3"></td><td colspan="2">(906,864)</td><td></td><td colspan="3"></td><td colspan="2">(532,347)</td><td></td></tr></table>See notes to consolidated financial statements. 68
q_com063
Compare the earnings per common share (basic) of Simon Property Group and Vornado Realty Trust for the year 2023.
In 2023, the basic earnings per common share for Simon Property Group were $6.98. For Vornado Realty Trust, the basic earnings per common share were $0.23. Simon Property Group's earnings per common share were significantly higher than those of Vornado Realty Trust. This difference indicates that Simon Property Group was able to generate much higher earnings for each share of common stock, reflecting its stronger profitability and better financial performance. The higher earnings per share for Simon Property Group suggest more effective operations and potentially higher returns for its shareholders compared to Vornado Realty Trust.
Comparison
86,87,88,89;63, 64
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
q_com064
Compare the debt-to-equity ratio for Simon Property Group and Vornado Realty Trust as of December 31, 2023.
The debt-to-equity ratio for Simon Property Group and Vornado Realty Trust as of December 31, 2023, can be calculated using the total debt and total equity figures. For Simon Property Group, the total debt were $26,518,284,000 and the total equity was $3,491,649,000, resulting in a debt-to-equity ratio of approximately 7.59. For Vornado Realty Trust, the total debt were $8,984,311,000, and the total equity was $5,705,286,000, resulting in a debt-to-equity ratio of approximately 1.57. Simon Property Group's debt-to-equity ratio was significantly higher than that of Vornado Realty Trust, indicating a more leveraged financial structure. This higher leverage could provide opportunities for growth but also poses higher financial risk compared to Vornado Realty Trust.
Comparison
86,87,88,89;62, 63
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 62: VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------|:-----------|:-----|:------------|:---|:-----------| | 1 | (Amounts in thousands, except unit, share and per share amounts) | As of December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | ASSETS | | | | | | | | 4 | Real estate, at cost: | | | | | | | | 5 | Land | $ | 2,436,221 | | | $ | 2,451,828 | | 6 | Buildings and improvements | 9,952,954 | | | 9,804,204 | | | | 7 | Development costs and construction in progress | 1,281,076 | | | 933,334 | | | | 9 | Leasehold improvements and equipment | 130,953 | | | 125,389 | | | | 10 | Total | 13,801,204 | | | 13,314,755 | | | | 11 | Less accumulated depreciation and amortization | (3,752,827) | | | (3,470,991) | | | | 12 | Real estate, net | 10,048,377 | | | 9,843,764 | | | | 13 | Right-of-use assets | 680,044 | | | 684,380 | | | | 14 | Cash and cash equivalents | 997,002 | | | 889,689 | | | | 15 | Restricted cash | 264,582 | | | 131,468 | | | | 16 | Investments in U.S. Treasury bills | - | | | 471,962 | | | | 17 | Tenant and other receivables | 69,543 | | | 81,170 | | | | 18 | Investments in partially owned entities | 2,610,558 | | | 2,665,073 | | | | 20 | 220 Central Park South condominium units ready for sale | 35,941 | | | 43,599 | | | | 21 | Receivable arising from the straight-lining of rents | 701,666 | | | 694,972 | | | | 22 | Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395 | 355,010 | | | 373,555 | | | | 23 | Identified intangible assets, net of accumulated amortization of $98,589 and $98,139 | 127,082 | | | 139,638 | | | | 24 | Other assets | 297,860 | | | 474,105 | | | | 25 | | $ | 16,187,665 | | | $ | 16,493,375 | | 26 | LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | | | 27 | Mortgages payable, net | $ | 5,688,020 | | | $ | 5,829,018 | | 28 | Senior unsecured notes, net | 1,193,873 | | | 1,191,832 | | | | 29 | Unsecured term loan, net | 794,559 | | | 793,193 | | | | 30 | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | | 31 | Lease liabilities | 732,859 | | | 735,969 | | | | 34 | Accounts payable and accrued expenses | 411,044 | | | 450,881 | | | | 35 | Deferred revenue | 32,199 | | | 39,882 | | | | 36 | Deferred compensation plan | 105,245 | | | 96,322 | | | | 37 | Other liabilities | 311,132 | | | 268,166 | | | | 38 | Total liabilities | 9,843,931 | | | 9,980,263 | | | | 39 | Commitments and contingencies | | | | | | | | 40 | Redeemable noncontrolling interests: | | | | | | | | 41 | Class A units - 17,000,030 and 14,416,891 units outstanding | 480,251 | | | 345,157 | | | | 42 | Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | | | 3,535 | | | | 43 | Total redeemable noncontrolling partnership units | 483,786 | | | 348,692 | | | | 44 | Redeemable noncontrolling interest in a consolidated subsidiary | 154,662 | | | 88,040 | | | | 45 | Total redeemable noncontrolling interests | 638,448 | | | 436,732 | | | | 46 | Shareholders' equity: | | | | | | | | 47 | Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 shares | 1,182,459 | | | 1,182,459 | | | | 48 | Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,390,703 and 191,866,880 shares | 7,594 | | | 7,654 | | | | 49 | Additional capital | 8,263,291 | | | 8,369,228 | | | | 50 | Earnings less than distributions | (4,009,395) | | | (3,894,580) | | | | 51 | Accumulated other comprehensive income | 65,115 | | | 174,967 | | | | 52 | Total shareholders' equity | 5,509,064 | | | 5,839,728 | | | | 53 | Noncontrolling interests in consolidated subsidiaries | 196,222 | | | 236,652 | | | | 54 | Total equity | 5,705,286 | | | 6,076,380 | | | | 55 | | $ | 16,187,665 | | | $ | 16,493,375 | See notes to the consolidated financial statements. 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------|:-----------|:-----|:------------|:---|:-----------| | 1 | (Amounts in thousands, except unit, share and per share amounts) | As of December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | ASSETS | | | | | | | | 4 | Real estate, at cost: | | | | | | | | 5 | Land | $ | 2,436,221 | | | $ | 2,451,828 | | 6 | Buildings and improvements | 9,952,954 | | | 9,804,204 | | | | 7 | Development costs and construction in progress | 1,281,076 | | | 933,334 | | | | 9 | Leasehold improvements and equipment | 130,953 | | | 125,389 | | | | 10 | Total | 13,801,204 | | | 13,314,755 | | | | 11 | Less accumulated depreciation and amortization | (3,752,827) | | | (3,470,991) | | | | 12 | Real estate, net | 10,048,377 | | | 9,843,764 | | | | 13 | Right-of-use assets | 680,044 | | | 684,380 | | | | 14 | Cash and cash equivalents | 997,002 | | | 889,689 | | | | 15 | Restricted cash | 264,582 | | | 131,468 | | | | 16 | Investments in U.S. Treasury bills | - | | | 471,962 | | | | 17 | Tenant and other receivables | 69,543 | | | 81,170 | | | | 18 | Investments in partially owned entities | 2,610,558 | | | 2,665,073 | | | | 20 | 220 Central Park South condominium units ready for sale | 35,941 | | | 43,599 | | | | 21 | Receivable arising from the straight-lining of rents | 701,666 | | | 694,972 | | | | 22 | Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395 | 355,010 | | | 373,555 | | | | 23 | Identified intangible assets, net of accumulated amortization of $98,589 and $98,139 | 127,082 | | | 139,638 | | | | 24 | Other assets | 297,860 | | | 474,105 | | | | 25 | | $ | 16,187,665 | | | $ | 16,493,375 | | 26 | LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | | | 27 | Mortgages payable, net | $ | 5,688,020 | | | $ | 5,829,018 | | 28 | Senior unsecured notes, net | 1,193,873 | | | 1,191,832 | | | | 29 | Unsecured term loan, net | 794,559 | | | 793,193 | | | | 30 | Unsecured revolving credit facilities | 575,000 | | | 575,000 | | | | 31 | Lease liabilities | 732,859 | | | 735,969 | | | | 34 | Accounts payable and accrued expenses | 411,044 | | | 450,881 | | | | 35 | Deferred revenue | 32,199 | | | 39,882 | | | | 36 | Deferred compensation plan | 105,245 | | | 96,322 | | | | 37 | Other liabilities | 311,132 | | | 268,166 | | | | 38 | Total liabilities | 9,843,931 | | | 9,980,263 | | | | 39 | Commitments and contingencies | | | | | | | | 40 | Redeemable noncontrolling interests: | | | | | | | | 41 | Class A units - 17,000,030 and 14,416,891 units outstanding | 480,251 | | | 345,157 | | | | 42 | Series D cumulative redeemable preferred units - 141,400 units outstanding | 3,535 | | | 3,535 | | | | 43 | Total redeemable noncontrolling partnership units | 483,786 | | | 348,692 | | | | 44 | Redeemable noncontrolling interest in a consolidated subsidiary | 154,662 | | | 88,040 | | | | 45 | Total redeemable noncontrolling interests | 638,448 | | | 436,732 | | | | 46 | Shareholders' equity: | | | | | | | | 47 | Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 shares | 1,182,459 | | | 1,182,459 | | | | 48 | Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,390,703 and 191,866,880 shares | 7,594 | | | 7,654 | | | | 49 | Additional capital | 8,263,291 | | | 8,369,228 | | | | 50 | Earnings less than distributions | (4,009,395) | | | (3,894,580) | | | | 51 | Accumulated other comprehensive income | 65,115 | | | 174,967 | | | | 52 | Total shareholders' equity | 5,509,064 | | | 5,839,728 | | | | 53 | Noncontrolling interests in consolidated subsidiaries | 196,222 | | | 236,652 | | | | 54 | Total equity | 5,705,286 | | | 6,076,380 | | | | 55 | | $ | 16,187,665 | | | $ | 16,493,375 | See notes to the consolidated financial statements. 62 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 62: VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except unit, share and per share amounts)</td><td colspan="9">As of December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Real estate, at cost:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land</td><td>$</td><td>2,436,221 </td><td></td><td colspan="3"></td><td>$</td><td>2,451,828 </td><td></td></tr><tr><td colspan="3">Buildings and improvements</td><td colspan="2">9,952,954 </td><td></td><td colspan="3"></td><td colspan="2">9,804,204 </td><td></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">1,281,076 </td><td></td><td colspan="3"></td><td colspan="2">933,334 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Leasehold improvements and equipment</td><td colspan="2">130,953 </td><td></td><td colspan="3"></td><td colspan="2">125,389 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="2">13,801,204 </td><td></td><td colspan="3"></td><td colspan="2">13,314,755 </td><td></td></tr><tr><td colspan="3">Less accumulated depreciation and amortization</td><td colspan="2">(3,752,827)</td><td></td><td colspan="3"></td><td colspan="2">(3,470,991)</td><td></td></tr><tr><td colspan="3">Real estate, net</td><td colspan="2">10,048,377 </td><td></td><td colspan="3"></td><td colspan="2">9,843,764 </td><td></td></tr><tr><td colspan="3">Right-of-use assets</td><td colspan="2">680,044 </td><td></td><td colspan="3"></td><td colspan="2">684,380 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="2">997,002 </td><td></td><td colspan="3"></td><td colspan="2">889,689 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">264,582 </td><td></td><td colspan="3"></td><td colspan="2">131,468 </td><td></td></tr><tr><td colspan="3">Investments in U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">471,962 </td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">69,543 </td><td></td><td colspan="3"></td><td colspan="2">81,170 </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">2,610,558 </td><td></td><td colspan="3"></td><td colspan="2">2,665,073 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">220 Central Park South condominium units ready for sale</td><td colspan="2">35,941 </td><td></td><td colspan="3"></td><td colspan="2">43,599 </td><td></td></tr><tr><td colspan="3">Receivable arising from the straight-lining of rents</td><td colspan="2">701,666 </td><td></td><td colspan="3"></td><td colspan="2">694,972 </td><td></td></tr><tr><td colspan="3">Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395</td><td colspan="2">355,010 </td><td></td><td colspan="3"></td><td colspan="2">373,555 </td><td></td></tr><tr><td colspan="3">Identified intangible assets, net of accumulated amortization of $98,589 and $98,139</td><td colspan="2">127,082 </td><td></td><td colspan="3"></td><td colspan="2">139,638 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">297,860 </td><td></td><td colspan="3"></td><td colspan="2">474,105 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3">LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgages payable, net</td><td>$</td><td>5,688,020 </td><td></td><td colspan="3"></td><td>$</td><td>5,829,018 </td><td></td></tr><tr><td colspan="3">Senior unsecured notes, net</td><td colspan="2">1,193,873 </td><td></td><td colspan="3"></td><td colspan="2">1,191,832 </td><td></td></tr><tr><td colspan="3">Unsecured term loan, net</td><td colspan="2">794,559 </td><td></td><td colspan="3"></td><td colspan="2">793,193 </td><td></td></tr><tr><td colspan="3">Unsecured revolving credit facilities</td><td colspan="2">575,000 </td><td></td><td colspan="3"></td><td colspan="2">575,000 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">732,859 </td><td></td><td colspan="3"></td><td colspan="2">735,969 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">411,044 </td><td></td><td colspan="3"></td><td colspan="2">450,881 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">32,199 </td><td></td><td colspan="3"></td><td colspan="2">39,882 </td><td></td></tr><tr><td colspan="3">Deferred compensation plan</td><td colspan="2">105,245 </td><td></td><td colspan="3"></td><td colspan="2">96,322 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">311,132 </td><td></td><td colspan="3"></td><td colspan="2">268,166 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">9,843,931 </td><td></td><td colspan="3"></td><td colspan="2">9,980,263 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Class A units - 17,000,030 and 14,416,891 units outstanding</td><td colspan="2">480,251 </td><td></td><td colspan="3"></td><td colspan="2">345,157 </td><td></td></tr><tr><td colspan="3">Series D cumulative redeemable preferred units - 141,400 units outstanding</td><td colspan="2">3,535 </td><td></td><td colspan="3"></td><td colspan="2">3,535 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling partnership units</td><td colspan="2">483,786 </td><td></td><td colspan="3"></td><td colspan="2">348,692 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest in a consolidated subsidiary</td><td colspan="2">154,662 </td><td></td><td colspan="3"></td><td colspan="2">88,040 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling interests</td><td colspan="2">638,448 </td><td></td><td colspan="3"></td><td colspan="2">436,732 </td><td></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 shares</td><td colspan="2">1,182,459 </td><td></td><td colspan="3"></td><td colspan="2">1,182,459 </td><td></td></tr><tr><td colspan="3">Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,390,703 and 191,866,880 shares</td><td colspan="2">7,594 </td><td></td><td colspan="3"></td><td colspan="2">7,654 </td><td></td></tr><tr><td colspan="3">Additional capital</td><td colspan="2">8,263,291 </td><td></td><td colspan="3"></td><td colspan="2">8,369,228 </td><td></td></tr><tr><td colspan="3">Earnings less than distributions</td><td colspan="2">(4,009,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,894,580)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income </td><td colspan="2">65,115 </td><td></td><td colspan="3"></td><td colspan="2">174,967 </td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">5,509,064 </td><td></td><td colspan="3"></td><td colspan="2">5,839,728 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in consolidated subsidiaries</td><td colspan="2">196,222 </td><td></td><td colspan="3"></td><td colspan="2">236,652 </td><td></td></tr><tr><td colspan="3">Total equity</td><td colspan="2">5,705,286 </td><td></td><td colspan="3"></td><td colspan="2">6,076,380 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr></table>See notes to the consolidated financial statements. 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except unit, share and per share amounts)</td><td colspan="9">As of December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Real estate, at cost:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land</td><td>$</td><td>2,436,221 </td><td></td><td colspan="3"></td><td>$</td><td>2,451,828 </td><td></td></tr><tr><td colspan="3">Buildings and improvements</td><td colspan="2">9,952,954 </td><td></td><td colspan="3"></td><td colspan="2">9,804,204 </td><td></td></tr><tr><td colspan="3">Development costs and construction in progress</td><td colspan="2">1,281,076 </td><td></td><td colspan="3"></td><td colspan="2">933,334 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Leasehold improvements and equipment</td><td colspan="2">130,953 </td><td></td><td colspan="3"></td><td colspan="2">125,389 </td><td></td></tr><tr><td colspan="3">Total</td><td colspan="2">13,801,204 </td><td></td><td colspan="3"></td><td colspan="2">13,314,755 </td><td></td></tr><tr><td colspan="3">Less accumulated depreciation and amortization</td><td colspan="2">(3,752,827)</td><td></td><td colspan="3"></td><td colspan="2">(3,470,991)</td><td></td></tr><tr><td colspan="3">Real estate, net</td><td colspan="2">10,048,377 </td><td></td><td colspan="3"></td><td colspan="2">9,843,764 </td><td></td></tr><tr><td colspan="3">Right-of-use assets</td><td colspan="2">680,044 </td><td></td><td colspan="3"></td><td colspan="2">684,380 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="2">997,002 </td><td></td><td colspan="3"></td><td colspan="2">889,689 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">264,582 </td><td></td><td colspan="3"></td><td colspan="2">131,468 </td><td></td></tr><tr><td colspan="3">Investments in U.S. Treasury bills</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">471,962 </td><td></td></tr><tr><td colspan="3">Tenant and other receivables</td><td colspan="2">69,543 </td><td></td><td colspan="3"></td><td colspan="2">81,170 </td><td></td></tr><tr><td colspan="3">Investments in partially owned entities</td><td colspan="2">2,610,558 </td><td></td><td colspan="3"></td><td colspan="2">2,665,073 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">220 Central Park South condominium units ready for sale</td><td colspan="2">35,941 </td><td></td><td colspan="3"></td><td colspan="2">43,599 </td><td></td></tr><tr><td colspan="3">Receivable arising from the straight-lining of rents</td><td colspan="2">701,666 </td><td></td><td colspan="3"></td><td colspan="2">694,972 </td><td></td></tr><tr><td colspan="3">Deferred leasing costs, net of accumulated amortization of $249,347 and $237,395</td><td colspan="2">355,010 </td><td></td><td colspan="3"></td><td colspan="2">373,555 </td><td></td></tr><tr><td colspan="3">Identified intangible assets, net of accumulated amortization of $98,589 and $98,139</td><td colspan="2">127,082 </td><td></td><td colspan="3"></td><td colspan="2">139,638 </td><td></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">297,860 </td><td></td><td colspan="3"></td><td colspan="2">474,105 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr><tr><td colspan="3">LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgages payable, net</td><td>$</td><td>5,688,020 </td><td></td><td colspan="3"></td><td>$</td><td>5,829,018 </td><td></td></tr><tr><td colspan="3">Senior unsecured notes, net</td><td colspan="2">1,193,873 </td><td></td><td colspan="3"></td><td colspan="2">1,191,832 </td><td></td></tr><tr><td colspan="3">Unsecured term loan, net</td><td colspan="2">794,559 </td><td></td><td colspan="3"></td><td colspan="2">793,193 </td><td></td></tr><tr><td colspan="3">Unsecured revolving credit facilities</td><td colspan="2">575,000 </td><td></td><td colspan="3"></td><td colspan="2">575,000 </td><td></td></tr><tr><td colspan="3">Lease liabilities</td><td colspan="2">732,859 </td><td></td><td colspan="3"></td><td colspan="2">735,969 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued expenses</td><td colspan="2">411,044 </td><td></td><td colspan="3"></td><td colspan="2">450,881 </td><td></td></tr><tr><td colspan="3">Deferred revenue</td><td colspan="2">32,199 </td><td></td><td colspan="3"></td><td colspan="2">39,882 </td><td></td></tr><tr><td colspan="3">Deferred compensation plan</td><td colspan="2">105,245 </td><td></td><td colspan="3"></td><td colspan="2">96,322 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="2">311,132 </td><td></td><td colspan="3"></td><td colspan="2">268,166 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">9,843,931 </td><td></td><td colspan="3"></td><td colspan="2">9,980,263 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Class A units - 17,000,030 and 14,416,891 units outstanding</td><td colspan="2">480,251 </td><td></td><td colspan="3"></td><td colspan="2">345,157 </td><td></td></tr><tr><td colspan="3">Series D cumulative redeemable preferred units - 141,400 units outstanding</td><td colspan="2">3,535 </td><td></td><td colspan="3"></td><td colspan="2">3,535 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling partnership units</td><td colspan="2">483,786 </td><td></td><td colspan="3"></td><td colspan="2">348,692 </td><td></td></tr><tr><td colspan="3">Redeemable noncontrolling interest in a consolidated subsidiary</td><td colspan="2">154,662 </td><td></td><td colspan="3"></td><td colspan="2">88,040 </td><td></td></tr><tr><td colspan="3">Total redeemable noncontrolling interests</td><td colspan="2">638,448 </td><td></td><td colspan="3"></td><td colspan="2">436,732 </td><td></td></tr><tr><td colspan="3">Shareholders' equity:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares of beneficial interest: no par value per share; authorized 110,000,000 shares; issued and outstanding 48,792,902 shares</td><td colspan="2">1,182,459 </td><td></td><td colspan="3"></td><td colspan="2">1,182,459 </td><td></td></tr><tr><td colspan="3">Common shares of beneficial interest: $0.04 par value per share; authorized 250,000,000 shares; issued and outstanding 190,390,703 and 191,866,880 shares</td><td colspan="2">7,594 </td><td></td><td colspan="3"></td><td colspan="2">7,654 </td><td></td></tr><tr><td colspan="3">Additional capital</td><td colspan="2">8,263,291 </td><td></td><td colspan="3"></td><td colspan="2">8,369,228 </td><td></td></tr><tr><td colspan="3">Earnings less than distributions</td><td colspan="2">(4,009,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,894,580)</td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income </td><td colspan="2">65,115 </td><td></td><td colspan="3"></td><td colspan="2">174,967 </td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">5,509,064 </td><td></td><td colspan="3"></td><td colspan="2">5,839,728 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests in consolidated subsidiaries</td><td colspan="2">196,222 </td><td></td><td colspan="3"></td><td colspan="2">236,652 </td><td></td></tr><tr><td colspan="3">Total equity</td><td colspan="2">5,705,286 </td><td></td><td colspan="3"></td><td colspan="2">6,076,380 </td><td></td></tr><tr><td colspan="3"> </td><td>$</td><td>16,187,665 </td><td></td><td colspan="3"></td><td>$</td><td>16,493,375 </td><td></td></tr></table>See notes to the consolidated financial statements. 62 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63
q_com065
Compare the revenue growth of Simon Property Group and Vornado Realty Trust from 2022 to 2023.
Simon Property Group's lease income increased by $259.2 million from 2022 to 2023, primarily due to an increase in fixed minimum lease consideration and higher occupancy. Total other income also increased by $99.1 million. Vornado Realty Trust's total revenues increased by $11.17 million from 2022 to 2023, with the New York segment contributing $2.72 million and the Other segment contributing $8.45 million. Simon Property Group experienced a more substantial revenue growth compared to Vornado Realty Trust, driven by higher lease income and other income.
Comparison
86,87,88,89;63, 64
0001558370-24-001532;0000899689-24-000005
Item 8. Financial Statements and Supplementary Data;ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------|:------------|:-------------|:---|:------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | December 31, | | | | 2 | ​ | | 2023 | | 2022 | | | | 3 | ASSETS: | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Investment properties, at cost | ​ | $ | 39,285,138 | ​ | $ | 38,326,912 | | 5 | Less - accumulated depreciation | ​ | | 17,716,788 | ​ | | 16,563,749 | | 6 | ​ | ​ | | 21,568,350 | ​ | | 21,763,163 | | 7 | Cash and cash equivalents | ​ | | 1,168,991 | ​ | | 621,628 | | 8 | Short-term investments | ​ | ​ | 1,000,000 | ​ | ​ | - | | 9 | Tenant receivables and accrued revenue, net | ​ | | 826,126 | ​ | | 823,540 | | 10 | Investment in TRG, at equity | ​ | | 3,049,719 | ​ | | 3,074,345 | | 11 | Investment in Klépierre, at equity | ​ | | 1,527,872 | ​ | | 1,561,112 | | 12 | Investment in other unconsolidated entities, at equity | ​ | ​ | 3,540,648 | ​ | ​ | 3,511,263 | | 13 | Right-of-use assets, net | ​ | ​ | 484,073 | ​ | ​ | 496,930 | | 14 | Deferred costs and other assets | ​ | | 1,117,716 | ​ | | 1,159,293 | | 15 | Total assets | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | | 16 | LIABILITIES: | ​ | ​ | ​ | ​ | ​ | ​ | | 17 | Mortgages and unsecured indebtedness | ​ | $ | 26,033,423 | ​ | $ | 24,960,286 | | 18 | Accounts payable, accrued expenses, intangibles, and deferred revenues | ​ | | 1,693,248 | ​ | | 1,491,583 | | 19 | Cash distributions and losses in unconsolidated entities, at equity | ​ | | 1,760,922 | ​ | | 1,699,828 | | 20 | Dividend payable | ​ | ​ | 1,842 | ​ | ​ | 1,997 | | 21 | Lease liabilities | ​ | ​ | 484,861 | ​ | ​ | 497,953 | | 22 | Other liabilities | ​ | | 621,601 | ​ | | 535,736 | | 23 | Total liabilities | ​ | | 30,595,897 | ​ | | 29,187,383 | | 24 | Commitments and contingencies | ​ | ​ | ​ | ​ | ​ | ​ | | 25 | Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests | ​ | | 195,949 | ​ | | 212,239 | | 26 | EQUITY: | ​ | ​ | ​ | ​ | ​ | ​ | | 27 | Stockholders' Equity | ​ | ​ | ​ | ​ | ​ | ​ | | 28 | Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock): | ​ | ​ | ​ | ​ | ​ | ​ | | 29 | Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847 | ​ | | 41,106 | ​ | | 41,435 | | 30 | Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively | ​ | | 33 | ​ | | 34 | | 31 | Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding | ​ | | - | ​ | | - | | 32 | Capital in excess of par value | ​ | | 11,406,236 | ​ | | 11,232,881 | | 33 | Accumulated deficit | ​ | | (6,095,576) | ​ | | (5,926,974) | | 34 | Accumulated other comprehensive loss | ​ | | (172,787) | ​ | | (164,873) | | 35 | Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively | ​ | | (2,156,178) | ​ | | (2,043,979) | | 36 | Total stockholders' equity | ​ | | 3,022,834 | ​ | | 3,138,524 | | 37 | Noncontrolling interests | ​ | | 468,815 | ​ | | 473,128 | | 38 | Total equity | ​ | | 3,491,649 | ​ | | 3,611,652 | | 39 | Total liabilities and equity | ​ | $ | 34,283,495 | ​ | $ | 33,011,274 | The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:----------|:-----|:---|:----------|:---|:---|:----------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | REVENUE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Lease income | ​ | $ | 5,164,335 | ​ | $ | 4,905,175 | ​ | $ | 4,736,719 | | 6 | Management fees and other revenues | ​ | | 125,995 | ​ | | 116,904 | ​ | | 106,483 | | 7 | Other income | ​ | | 368,506 | ​ | | 269,368 | ​ | | 273,587 | | 8 | Total revenue | ​ | | 5,658,836 | ​ | | 5,291,447 | ​ | | 5,116,789 | | 9 | EXPENSES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 10 | Property operating | ​ | | 489,346 | ​ | | 464,135 | ​ | | 415,720 | | 11 | Depreciation and amortization | ​ | | 1,262,107 | ​ | | 1,227,371 | ​ | | 1,262,715 | | 12 | Real estate taxes | ​ | | 441,783 | ​ | | 443,224 | ​ | | 458,953 | | 13 | Repairs and maintenance | ​ | | 97,257 | ​ | | 93,595 | ​ | | 96,391 | | 14 | Advertising and promotion | ​ | | 127,346 | ​ | | 107,793 | ​ | | 114,303 | | 15 | Home and regional office costs | ​ | | 207,618 | ​ | | 184,592 | ​ | | 184,660 | | 16 | General and administrative | ​ | | 38,513 | ​ | | 34,971 | ​ | | 30,339 | | 17 | Other | ​ | | 187,844 | ​ | | 152,213 | ​ | | 140,518 | | 18 | Total operating expenses | ​ | | 2,851,814 | ​ | | 2,707,894 | ​ | | 2,703,599 | | 19 | OPERATING INCOME BEFORE OTHER ITEMS | ​ | | 2,807,022 | ​ | | 2,583,553 | ​ | | 2,413,190 | | 20 | Interest expense | ​ | | (854,648) | ​ | | (761,253) | ​ | | (795,712) | | 21 | Loss on extinguishment of debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (51,841) | | 22 | Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6) | ​ | ​ | 362,019 | ​ | ​ | 121,177 | ​ | ​ | 178,672 | | 23 | Income and other tax expense | ​ | | (81,874) | ​ | | (83,512) | ​ | | (157,199) | | 24 | Income from unconsolidated entities | ​ | | 375,663 | ​ | | 647,977 | ​ | | 782,837 | | 25 | Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | 11,892 | ​ | ​ | (61,204) | ​ | ​ | (8,095) | | 26 | (Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | (3,056) | ​ | | 5,647 | ​ | | 206,855 | | 27 | CONSOLIDATED NET INCOME | ​ | ​ | 2,617,018 | ​ | ​ | 2,452,385 | ​ | ​ | 2,568,707 | | 28 | Net income attributable to noncontrolling interests | ​ | | 333,892 | ​ | | 312,850 | ​ | | 319,076 | | 29 | Preferred dividends | ​ | | 3,337 | ​ | | 3,337 | ​ | | 3,337 | | 30 | NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | ​ | $ | 2,279,789 | ​ | $ | 2,136,198 | ​ | $ | 2,246,294 | | 31 | BASIC AND DILUTED EARNINGS PER COMMON SHARE: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 32 | Net income attributable to common stockholders | ​ | $ | 6.98 | ​ | $ | 6.52 | ​ | $ | 6.84 | | 33 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 34 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 35 | Unrealized gain on derivative hedge agreements | ​ | | 18,350 | ​ | | 54,808 | ​ | | 51,114 | | 36 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | | (4,084) | ​ | | (1,595) | ​ | | (7,285) | | 37 | Currency translation adjustments | ​ | | (26,513) | ​ | | (28,119) | ​ | | (38,772) | | 38 | Changes in available-for-sale securities and other | ​ | | 2,254 | ​ | | (2,009) | ​ | | (1,014) | | 39 | Comprehensive income | ​ | | 2,607,025 | ​ | | 2,475,470 | ​ | | 2,572,750 | | 40 | Comprehensive income attributable to noncontrolling interests | ​ | | 331,814 | ​ | | 315,622 | ​ | | 319,629 | | 41 | Comprehensive income attributable to common stockholders | ​ | $ | 2,275,211 | ​ | $ | 2,159,848 | ​ | $ | 2,253,121 | ​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:-------------------|:------------|:-----|:---|:------------|:---|:---|:-------------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | For the Year | | | | | | | | | 2 | ​ | ​ | Ended December 31, | | | | | | | | | 3 | ​ | | 2023 | | 2022 | | 2021 | | | | | 4 | CASH FLOWS FROM OPERATING ACTIVITIES: | ​ | ​ | | | ​ | | | ​ | | | 5 | Consolidated Net Income | ​ | $ | 2,617,018 | ​ | $ | 2,452,385 | ​ | $ | 2,568,707 | | 6 | Adjustments to reconcile consolidated net income to net cash provided by operating activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 7 | Depreciation and amortization | ​ | | 1,333,584 | ​ | | 1,292,113 | ​ | | 1,325,895 | | 8 | Loss on debt extinguishment | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 51,841 | | 9 | Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net | ​ | | 3,056 | ​ | | (5,647) | ​ | | (206,855) | | 10 | Gain on disposal, exchange, or revaluation of equity interests, net | ​ | ​ | (362,019) | ​ | ​ | (121,177) | ​ | ​ | (178,672) | | 11 | Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net | ​ | ​ | (11,892) | ​ | ​ | 61,204 | ​ | ​ | 8,095 | | 12 | Straight-line lease loss | ​ | | 9,866 | ​ | | 25,234 | ​ | | 22,619 | | 13 | Income from unconsolidated entities | ​ | | (375,663) | ​ | | (647,977) | ​ | | (782,837) | | 14 | Distributions of income from unconsolidated entities | ​ | | 458,709 | ​ | | 561,583 | ​ | | 436,881 | | 15 | Changes in assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Tenant receivables and accrued revenue, net | ​ | | (11,802) | ​ | | 63,350 | ​ | | 265,352 | | 17 | Deferred costs and other assets | ​ | | 24,423 | ​ | | (104,567) | ​ | | (77,592) | | 18 | Accounts payable, accrued expenses, intangibles, deferred revenues and other | ​ | | 245,513 | ​ | | 190,103 | ​ | | 203,968 | | 19 | Net cash provided by operating activities | ​ | | 3,930,793 | ​ | | 3,766,604 | ​ | | 3,637,402 | | 20 | CASH FLOWS FROM INVESTING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 21 | Acquisitions | ​ | | (65,829) | ​ | | (203,364) | ​ | | (257,080) | | 22 | Funding of loans to related parties | ​ | | (15,250) | ​ | | (132,857) | ​ | | (15,848) | | 23 | Repayments of loans to related parties | ​ | | 16,188 | ​ | | 82,371 | ​ | | 14,027 | | 24 | Capital expenditures, net | ​ | | (793,283) | ​ | | (650,024) | ​ | | (527,935) | | 25 | Cash impact from the consolidation of properties | ​ | | - | ​ | | 20,988 | ​ | | 5,595 | | 26 | Net proceeds from sale of assets | ​ | | - | ​ | | 59,658 | ​ | | 3,000 | | 27 | Investments in unconsolidated entities | ​ | | (83,961) | ​ | | (235,792) | ​ | | (56,901) | | 28 | Purchase of short-term investments | ​ | ​ | (1,000,000) | ​ | ​ | - | ​ | ​ | - | | 29 | Purchase of equity instruments | ​ | | (31,742) | ​ | | (66,140) | ​ | | (33,605) | | 30 | Proceeds from sales of equity instruments | ​ | | 304,129 | ​ | | 26,086 | ​ | | 65,504 | | 31 | Insurance proceeds for property restoration | ​ | ​ | 7,427 | ​ | ​ | - | ​ | ​ | 7,200 | | 32 | Distributions of capital from unconsolidated entities and other | ​ | | 299,140 | ​ | | 472,510 | ​ | | 243,279 | | 33 | Net cash used in investing activities | ​ | | (1,363,181) | ​ | | (626,564) | ​ | | (552,764) | | 34 | CASH FLOWS FROM FINANCING ACTIVITIES: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 35 | Proceeds from sales of common stock and other, net of transaction costs | ​ | | (328) | ​ | | (328) | ​ | | (328) | | 36 | Purchase of shares related to stock grant recipients' tax withholdings | ​ | ​ | (5,795) | ​ | ​ | (6,788) | ​ | ​ | (2,318) | | 37 | Redemption of limited partner units | ​ | | (13,524) | ​ | | (1,852) | ​ | | (2,220) | | 38 | Purchase of treasury stock | ​ | ​ | (140,593) | ​ | ​ | (180,387) | ​ | ​ | - | | 39 | Preferred unit redemptions | ​ | ​ | (2,500) | ​ | ​ | - | ​ | ​ | - | | 40 | Proceeds from the special purpose acquisition company IPO, net of transaction costs | ​ | ​ | - | ​ | ​ | - | ​ | ​ | 338,121 | | 41 | Proceeds from (establishment of) trust account for special purpose acquisition company | ​ | | - | ​ | | 345,000 | ​ | | (345,000) | | 42 | Liquidation of special purpose acquisition company | ​ | | - | ​ | | (345,000) | ​ | | - | | 43 | Distributions to noncontrolling interest holders in properties | ​ | | (41,956) | ​ | | (27,741) | ​ | | (5,024) | | 44 | Contributions from noncontrolling interest holders in properties | ​ | | 9,813 | ​ | | 29,681 | ​ | | 20,902 | | 45 | Preferred distributions of the Operating Partnership | ​ | | (1,900) | ​ | | (1,915) | ​ | | (1,915) | | 46 | Distributions to stockholders and preferred dividends | ​ | | (2,439,233) | ​ | | (2,264,007) | ​ | | (2,351,764) | | 47 | Distributions to limited partners | ​ | | (355,548) | ​ | | (326,550) | ​ | | (337,021) | | 48 | Cash paid to extinguish debt | ​ | ​ | - | ​ | ​ | - | ​ | ​ | (50,156) | | 49 | Proceeds from issuance of debt, net of transaction costs | ​ | | 3,629,840 | ​ | | 3,449,403 | ​ | | 9,251,217 | | 50 | Repayments of debt | ​ | | (2,658,525) | ​ | | (3,721,864) | ​ | | (10,076,809) | | 51 | Net cash used in financing activities | ​ | | (2,020,249) | ​ | | (3,052,348) | ​ | | (3,562,315) | | 52 | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ​ | | 547,363 | ​ | | 87,692 | ​ | | (477,677) | | 53 | CASH AND CASH EQUIVALENTS, beginning of period | ​ | | 621,628 | ​ | | 533,936 | ​ | | 1,011,613 | | 54 | CASH AND CASH EQUIVALENTS, end of period | ​ | $ | 1,168,991 | ​ | $ | 621,628 | ​ | $ | 533,936 | The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---|:----------|:-------|:-------|:---|:-------|:---|:------------------|:----------|:------------|:---|:-----------|:---|:---------------|:-------------|:-------|:---|:------------|:---|:---|:----------|:---|:---|:------------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | ​ | ​ | | ​ | ​ | | Accumulated Other | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | | 2 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Comprehensive | ​ | Capital in | ​ | ​ | ​ | ​ | Common Stock | ​ | ​ | ​ | ​ | ​ | ​ | | | | | | 3 | ​ | ​ | Preferred | ​ | Common | ​ | Income | ​ | Excess of Par | ​ | Accumulated | ​ | Held in | ​ | Noncontrolling | ​ | Total | | | | | | | | | | | 4 | ​ | ​ | Stock | ​ | Stock | ​ | (Loss) | ​ | Value | ​ | Deficit | ​ | Treasury | ​ | Interests | ​ | Equity | | | | | | | | | | | 5 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 6 | Balance at December 31, 2020 | ​ | $ | 42,091 | ​ | $ | 34 | ​ | $ | (188,675) | ​ | $ | 11,179,688 | ​ | $ | (6,102,314) | ​ | $ | (1,891,352) | ​ | $ | 432,874 | ​ | $ | 3,472,346 | ​ | | 7 | Exchange of limited partner units (58,571 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 539 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (539) | ​ | ​ | - | ​ | | 8 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 9 | Stock incentive program (80,012 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (9,229) | ​ | ​ | ​ | ​ | ​ | 9,229 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 10 | Redemption of limited partner units (15,705 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,061) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (159) | ​ | ​ | (2,220) | ​ | | 11 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 19,673 | ​ | | 12 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 17,755 | ​ | ​ | 17,755 | ​ | | 13 | Issuance of unit equivalents and other (20,374 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 5,760 | ​ | ​ | (44,319) | ​ | ​ | (2,318) | ​ | ​ | 18,494 | ​ | ​ | (22,383) | ​ | | 14 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 44,676 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,438 | ​ | ​ | 51,114 | ​ | | 15 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (33,932) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,840) | ​ | ​ | (38,772) | ​ | | 16 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (886) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (128) | ​ | ​ | (1,014) | ​ | | 17 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (6,369) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (916) | ​ | ​ | (7,285) | ​ | | 18 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 3,489 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 554 | ​ | | 4,043 | ​ | | 19 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 18,620 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (18,620) | ​ | ​ | - | ​ | | 20 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,926,706) | ​ | ​ | ​ | ​ | ​ | (276,698) | ​ | ​ | (2,203,404) | ​ | | 21 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,708) | ​ | ​ | (2,708) | ​ | | 22 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,249,631 | ​ | ​ | ​ | ​ | ​ | 320,580 | ​ | ​ | 2,570,211 | ​ | | 23 | Balance at December 31, 2021 | ​ | $ | 41,763 | ​ | $ | 34 | ​ | $ | (185,186) | ​ | $ | 11,212,990 | ​ | $ | (5,823,708) | ​ | $ | (1,884,441) | ​ | $ | 491,533 | ​ | $ | 3,852,985 | ​ | | 24 | Exchange of limited partner units (2,680 common shares, Note 8) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 27 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27) | ​ | ​ | - | ​ | | 25 | Series J preferred stock premium amortization | ​ | ​ | (328) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (328) | ​ | | 26 | Stock incentive program (208,063 common shares, net) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (27,637) | ​ | ​ | ​ | ​ | ​ | 27,637 | ​ | ​ | ​ | ​ | ​ | - | ​ | | 27 | Redemption of limited partner units (14,740 units) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,708) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (144) | ​ | ​ | (1,852) | ​ | | 28 | Amortization of stock incentive | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 23,670 | ​ | | 29 | Treasury stock purchase (1,830,022 shares) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | ​ | ​ | ​ | ​ | (180,387) | ​ | | 30 | Long-term incentive performance units | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 14,845 | ​ | ​ | 14,845 | ​ | | 31 | Issuance of unit equivalents and other (46,555 common shares repurchased) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,769) | ​ | ​ | 21,206 | ​ | ​ | (6,788) | ​ | ​ | 10,600 | ​ | ​ | 22,249 | ​ | | 32 | Unrealized gain on hedging activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 47,888 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 6,920 | ​ | ​ | 54,808 | ​ | | 33 | Currency translation adjustments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (24,427) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (3,692) | ​ | ​ | (28,119) | ​ | | 34 | Changes in available-for-sale securities and other | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,755) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (254) | ​ | ​ | (2,009) | ​ | | 35 | Net gain reclassified from accumulated other comprehensive loss into earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,393) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (202) | ​ | ​ | (1,595) | ​ | | 36 | Other comprehensive income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 20,313 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,772 | ​ | ​ | 23,085 | ​ | | 37 | Adjustment to limited partners' interest from change in ownership in the Operating Partnership | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 28,308 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (28,308) | ​ | ​ | - | ​ | | 38 | Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (2,264,007) | ​ | ​ | ​ | ​ | ​ | (326,550) | ​ | ​ | (2,590,557) | ​ | | 39 | Distribution to other noncontrolling interest partners | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (1,362) | ​ | ​ | (1,362) | ​ | | 40 | Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 2,139,535 | ​ | ​ | ​ | ​ | ​ | 309,769 | ​ | ​ | 2,449,304 | ​ | | 41 | Balance at December 31, 2022 | ​ | $ | 41,435 | ​ | $ | 34 | ​ | $ | (164,873) | ​ | $ | 11,232,881 | ​ | $ | (5,926,974) | ​ | $ | (2,043,979) | ​ | $ | 473,128 | ​ | $ | 3,611,652 | ​ | 89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:--------------------------------|:----------|:-----|:------------|:-----|:----------|:------------|:---|:----------| | 1 | (Amounts in thousands, except per share amounts) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | REVENUES: | | | | | | | | | | | 4 | Rental revenues | $ | 1,607,486 | | | $ | 1,607,685 | | $ | 1,424,531 | | 5 | Fee and other income | 203,677 | | | 192,310 | | | 164,679 | | | | 6 | Total revenues | 1,811,163 | | | 1,799,995 | | | 1,589,210 | | | | 7 | EXPENSES: | | | | | | | | | | | 8 | Operating | (905,158) | | | (873,911) | | | (797,315) | | | | 9 | Depreciation and amortization | (434,273) | | | (504,502) | | | (412,347) | | | | 10 | General and administrative | (162,883) | | | (133,731) | | | (134,545) | | | | 11 | (Expense) benefit from deferred compensation plan liability | (12,162) | | | 9,617 | | | (9,847) | | | | 12 | Impairment losses, transaction related costs and other | (50,691) | | | (31,722) | | | (13,815) | | | | 13 | Total expenses | (1,565,167) | | | (1,534,249) | | | (1,367,869) | | | | 15 | Income (loss) from partially owned entities | 38,689 | | | (461,351) | | | 130,517 | | | | 16 | Income from real estate fund investments | 1,590 | | | 3,541 | | | 11,066 | | | | 17 | Interest and other investment income, net | 41,697 | | | 19,869 | | | 4,612 | | | | 18 | Income (loss) from deferred compensation plan assets | 12,162 | | | (9,617) | | | 9,847 | | | | 19 | Interest and debt expense | (349,223) | | | (279,765) | | | (231,096) | | | | 20 | Net gains on disposition of wholly owned and partially owned assets | 71,199 | | | 100,625 | | | 50,770 | | | | 21 | Income (loss) before income taxes | 62,110 | | | (360,952) | | | 197,057 | | | | 22 | Income tax (expense) benefit | (29,222) | | | (21,660) | | | 10,496 | | | | 23 | Net income (loss) | 32,888 | | | (382,612) | | | 207,553 | | | | 24 | Less net loss (income) attributable to noncontrolling interests in: | | | | | | | | | | | 25 | Consolidated subsidiaries | 75,967 | | | 5,737 | | | (24,014) | | | | 26 | Operating Partnership | (3,361) | | | 30,376 | | | (7,540) | | | | 27 | Net income (loss) attributable to Vornado | 105,494 | | | (346,499) | | | 175,999 | | | | 28 | Preferred share dividends | (62,116) | | | (62,116) | | | (65,880) | | | | 29 | Series K preferred share issuance costs | - | | | - | | | (9,033) | | | | 30 | NET INCOME (LOSS) attributable to common shareholders | $ | 43,378 | | | $ | (408,615) | | $ | 101,086 | | 37 | INCOME (LOSS) PER COMMON SHARE - BASIC: | | | | | | | | | | | 38 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 39 | Weighted average shares outstanding | 191,005 | | | 191,775 | | | 191,551 | | | | 41 | INCOME (LOSS) PER COMMON SHARE - DILUTED: | | | | | | | | | | | 42 | Net income (loss) per common share | $ | 0.23 | | | $ | (2.13) | | $ | 0.53 | | 43 | Weighted average shares outstanding | 191,856 | | | 191,775 | | | 192,122 | | | See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:--------------------------------|:--------|:-----|:----------|:-----|:----------|:---------|:---|:--------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income (loss) | $ | 32,888 | | | $ | (382,612) | | $ | 207,553 | | 4 | Other comprehensive (loss) income: | | | | | | | | | | | 5 | Change in fair value of interest rate swaps and other | (112,051) | | | 190,493 | | | 51,338 | | | | 6 | Other comprehensive (loss) income of nonconsolidated subsidiaries | (8,286) | | | 18,874 | | | 10,275 | | | | 8 | Comprehensive (loss) income | (87,449) | | | (173,245) | | | 269,166 | | | | 9 | Less comprehensive loss (income) attributable to noncontrolling interests | 85,665 | | | 19,247 | | | (35,602) | | | | 10 | Comprehensive (loss) income attributable to Vornado | $ | (1,784) | | | $ | (153,998) | | $ | 233,564 | See notes to consolidated financial statements. 64
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 86: Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 87: Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 88: Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 89: Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 63: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 64: VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
Simon Property Group, Inc. Consolidated Balance Sheets (Dollars in thousands, except share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td></tr><tr><td>ASSETS:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Investment properties, at cost</td><td>​</td><td>$</td><td> 39,285,138</td><td>​</td><td>$</td><td> 38,326,912</td></tr><tr><td>Less - accumulated depreciation</td><td>​</td><td> </td><td> 17,716,788</td><td>​</td><td> </td><td> 16,563,749</td></tr><tr><td>​</td><td>​</td><td> </td><td> 21,568,350</td><td>​</td><td> </td><td> 21,763,163</td></tr><tr><td>Cash and cash equivalents</td><td>​</td><td> </td><td> 1,168,991</td><td>​</td><td> </td><td> 621,628</td></tr><tr><td>Short-term investments</td><td>​</td><td>​</td><td> 1,000,000</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> 826,126</td><td>​</td><td> </td><td> 823,540</td></tr><tr><td>Investment in TRG, at equity</td><td>​</td><td> </td><td> 3,049,719</td><td>​</td><td> </td><td> 3,074,345</td></tr><tr><td>Investment in Klépierre, at equity</td><td>​</td><td> </td><td> 1,527,872</td><td>​</td><td> </td><td> 1,561,112</td></tr><tr><td>Investment in other unconsolidated entities, at equity</td><td>​</td><td>​</td><td> 3,540,648</td><td>​</td><td>​</td><td> 3,511,263</td></tr><tr><td>Right-of-use assets, net</td><td>​</td><td>​</td><td> 484,073</td><td>​</td><td>​</td><td> 496,930</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 1,117,716</td><td>​</td><td> </td><td> 1,159,293</td></tr><tr><td>Total assets</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr><tr><td>LIABILITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Mortgages and unsecured indebtedness</td><td>​</td><td>$</td><td> 26,033,423</td><td>​</td><td>$</td><td> 24,960,286</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, and deferred revenues</td><td>​</td><td> </td><td> 1,693,248</td><td>​</td><td> </td><td> 1,491,583</td></tr><tr><td>Cash distributions and losses in unconsolidated entities, at equity</td><td>​</td><td> </td><td> 1,760,922</td><td>​</td><td> </td><td> 1,699,828</td></tr><tr><td>Dividend payable</td><td>​</td><td>​</td><td> 1,842</td><td>​</td><td>​</td><td> 1,997</td></tr><tr><td>Lease liabilities</td><td>​</td><td>​</td><td> 484,861</td><td>​</td><td>​</td><td> 497,953</td></tr><tr><td>Other liabilities</td><td>​</td><td> </td><td> 621,601</td><td>​</td><td> </td><td> 535,736</td></tr><tr><td>Total liabilities</td><td>​</td><td> </td><td> 30,595,897</td><td>​</td><td> </td><td> 29,187,383</td></tr><tr><td>Commitments and contingencies</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Limited partners' preferred interest in the Operating Partnership and noncontrolling redeemable interests </td><td>​</td><td> </td><td> 195,949</td><td>​</td><td> </td><td> 212,239</td></tr><tr><td>EQUITY:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Stockholders' Equity</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000 shares of excess common stock, 100,000,000 authorized shares of preferred stock):</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Series J 83/8% cumulative redeemable preferred stock, 1,000,000 shares authorized, 796,948 issued and outstanding with a liquidation value of $39,847</td><td>​</td><td> </td><td> 41,106</td><td>​</td><td> </td><td> 41,435</td></tr><tr><td>Common stock, $0.0001 par value, 511,990,000 shares authorized, 342,895,886 and 342,905,419 issued and outstanding, respectively</td><td>​</td><td> </td><td> 33</td><td>​</td><td> </td><td> 34</td></tr><tr><td>Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000 issued and outstanding</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> -</td></tr><tr><td>Capital in excess of par value</td><td>​</td><td> </td><td> 11,406,236</td><td>​</td><td> </td><td> 11,232,881</td></tr><tr><td>Accumulated deficit</td><td>​</td><td> </td><td> (6,095,576)</td><td>​</td><td> </td><td> (5,926,974)</td></tr><tr><td>Accumulated other comprehensive loss</td><td>​</td><td> </td><td> (172,787)</td><td>​</td><td> </td><td> (164,873)</td></tr><tr><td>Common stock held in treasury, at cost, 16,983,364 and 15,959,628 shares, respectively</td><td>​</td><td> </td><td> (2,156,178)</td><td>​</td><td> </td><td> (2,043,979)</td></tr><tr><td>Total stockholders' equity</td><td>​</td><td> </td><td> 3,022,834</td><td>​</td><td> </td><td> 3,138,524</td></tr><tr><td>Noncontrolling interests</td><td>​</td><td> </td><td> 468,815</td><td>​</td><td> </td><td> 473,128</td></tr><tr><td>Total equity</td><td>​</td><td> </td><td> 3,491,649</td><td>​</td><td> </td><td> 3,611,652</td></tr><tr><td>Total liabilities and equity</td><td>​</td><td>$</td><td> 34,283,495</td><td>​</td><td>$</td><td> 33,011,274</td></tr></table>The accompanying notes are an integral part of these statements. ​ 86 , Simon Property Group, Inc. Consolidated Statements of Operations and Comprehensive Income (Dollars in thousands, except per share amounts) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>REVENUE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Lease income</td><td>​</td><td>$</td><td> 5,164,335</td><td>​</td><td>$</td><td> 4,905,175</td><td>​</td><td>$</td><td> 4,736,719</td></tr><tr><td>Management fees and other revenues</td><td>​</td><td> </td><td> 125,995</td><td>​</td><td> </td><td> 116,904</td><td>​</td><td> </td><td> 106,483</td></tr><tr><td>Other income</td><td>​</td><td> </td><td> 368,506</td><td>​</td><td> </td><td> 269,368</td><td>​</td><td> </td><td> 273,587</td></tr><tr><td>Total revenue</td><td>​</td><td> </td><td> 5,658,836</td><td>​</td><td> </td><td> 5,291,447</td><td>​</td><td> </td><td> 5,116,789</td></tr><tr><td>EXPENSES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Property operating</td><td>​</td><td> </td><td> 489,346</td><td>​</td><td> </td><td> 464,135</td><td>​</td><td> </td><td> 415,720</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,262,107</td><td>​</td><td> </td><td> 1,227,371</td><td>​</td><td> </td><td> 1,262,715</td></tr><tr><td>Real estate taxes</td><td>​</td><td> </td><td> 441,783</td><td>​</td><td> </td><td> 443,224</td><td>​</td><td> </td><td> 458,953</td></tr><tr><td>Repairs and maintenance</td><td>​</td><td> </td><td> 97,257</td><td>​</td><td> </td><td> 93,595</td><td>​</td><td> </td><td> 96,391</td></tr><tr><td>Advertising and promotion</td><td>​</td><td> </td><td> 127,346</td><td>​</td><td> </td><td> 107,793</td><td>​</td><td> </td><td> 114,303</td></tr><tr><td>Home and regional office costs</td><td>​</td><td> </td><td> 207,618</td><td>​</td><td> </td><td> 184,592</td><td>​</td><td> </td><td> 184,660</td></tr><tr><td>General and administrative</td><td>​</td><td> </td><td> 38,513</td><td>​</td><td> </td><td> 34,971</td><td>​</td><td> </td><td> 30,339</td></tr><tr><td>Other</td><td>​</td><td> </td><td> 187,844</td><td>​</td><td> </td><td> 152,213</td><td>​</td><td> </td><td> 140,518</td></tr><tr><td>Total operating expenses</td><td>​</td><td> </td><td> 2,851,814</td><td>​</td><td> </td><td> 2,707,894</td><td>​</td><td> </td><td> 2,703,599</td></tr><tr><td>OPERATING INCOME BEFORE OTHER ITEMS</td><td>​</td><td> </td><td> 2,807,022</td><td>​</td><td> </td><td> 2,583,553</td><td>​</td><td> </td><td> 2,413,190</td></tr><tr><td>Interest expense</td><td>​</td><td> </td><td> (854,648)</td><td>​</td><td> </td><td> (761,253)</td><td>​</td><td> </td><td> (795,712)</td></tr><tr><td>Loss on extinguishment of debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (51,841)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net (Notes 3 and 6)</td><td>​</td><td>​</td><td> 362,019</td><td>​</td><td>​</td><td> 121,177</td><td>​</td><td>​</td><td> 178,672</td></tr><tr><td>Income and other tax expense</td><td>​</td><td> </td><td> (81,874)</td><td>​</td><td> </td><td> (83,512)</td><td>​</td><td> </td><td> (157,199)</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> 375,663</td><td>​</td><td> </td><td> 647,977</td><td>​</td><td> </td><td> 782,837</td></tr><tr><td>Unrealized gains (losses) in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> 11,892</td><td>​</td><td>​</td><td> (61,204)</td><td>​</td><td>​</td><td> (8,095)</td></tr><tr><td>(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> (3,056)</td><td>​</td><td> </td><td> 5,647</td><td>​</td><td> </td><td> 206,855</td></tr><tr><td>CONSOLIDATED NET INCOME</td><td>​</td><td>​</td><td> 2,617,018</td><td>​</td><td>​</td><td> 2,452,385</td><td>​</td><td>​</td><td> 2,568,707</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 333,892</td><td>​</td><td> </td><td> 312,850</td><td>​</td><td> </td><td> 319,076</td></tr><tr><td>Preferred dividends</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td><td>​</td><td> </td><td> 3,337</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS</td><td>​</td><td>$</td><td> 2,279,789</td><td>​</td><td>$</td><td> 2,136,198</td><td>​</td><td>$</td><td> 2,246,294</td></tr><tr><td>BASIC AND DILUTED EARNINGS PER COMMON SHARE:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Net income attributable to common stockholders</td><td>​</td><td>$</td><td> 6.98</td><td>​</td><td>$</td><td> 6.52</td><td>​</td><td>$</td><td> 6.84</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Unrealized gain on derivative hedge agreements</td><td>​</td><td> </td><td> 18,350</td><td>​</td><td> </td><td> 54,808</td><td>​</td><td> </td><td> 51,114</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td> </td><td> (4,084)</td><td>​</td><td> </td><td> (1,595)</td><td>​</td><td> </td><td> (7,285)</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td> </td><td> (26,513)</td><td>​</td><td> </td><td> (28,119)</td><td>​</td><td> </td><td> (38,772)</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td> </td><td> 2,254</td><td>​</td><td> </td><td> (2,009)</td><td>​</td><td> </td><td> (1,014)</td></tr><tr><td>Comprehensive income</td><td>​</td><td> </td><td> 2,607,025</td><td>​</td><td> </td><td> 2,475,470</td><td>​</td><td> </td><td> 2,572,750</td></tr><tr><td>Comprehensive income attributable to noncontrolling interests</td><td>​</td><td> </td><td> 331,814</td><td>​</td><td> </td><td> 315,622</td><td>​</td><td> </td><td> 319,629</td></tr><tr><td>Comprehensive income attributable to common stockholders</td><td>​</td><td>$</td><td> 2,275,211</td><td>​</td><td>$</td><td> 2,159,848</td><td>​</td><td>$</td><td> 2,253,121</td></tr></table>​ The accompanying notes are an integral part of these statements. ​ 87 , Simon Property Group, Inc. Consolidated Statements of Cash Flows (Dollars in thousands) <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td colspan="8">For the Year</td></tr><tr><td>​</td><td>​</td><td colspan="8">Ended December 31, </td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td colspan="2">2022</td><td> </td><td colspan="2">2021</td></tr><tr><td>CASH FLOWS FROM OPERATING ACTIVITIES:</td><td>​</td><td>​</td><td> </td><td> </td><td>​</td><td> </td><td> </td><td>​</td><td> </td></tr><tr><td>Consolidated Net Income</td><td>​</td><td>$</td><td> 2,617,018</td><td>​</td><td>$</td><td> 2,452,385</td><td>​</td><td>$</td><td> 2,568,707</td></tr><tr><td>Adjustments to reconcile consolidated net income to net cash provided by operating activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Depreciation and amortization</td><td>​</td><td> </td><td> 1,333,584</td><td>​</td><td> </td><td> 1,292,113</td><td>​</td><td> </td><td> 1,325,895</td></tr><tr><td>Loss on debt extinguishment</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 51,841</td></tr><tr><td>Loss (gain) on acquisition of controlling interests, sale or disposal of, or recovery on, assets and interests in unconsolidated entities and impairment, net</td><td>​</td><td> </td><td> 3,056</td><td>​</td><td> </td><td> (5,647)</td><td>​</td><td> </td><td> (206,855)</td></tr><tr><td>Gain on disposal, exchange, or revaluation of equity interests, net</td><td>​</td><td>​</td><td> (362,019)</td><td>​</td><td>​</td><td> (121,177)</td><td>​</td><td>​</td><td> (178,672)</td></tr><tr><td>Unrealized (gains) losses in fair value of publicly traded equity instruments and derivative instrument, net</td><td>​</td><td>​</td><td> (11,892)</td><td>​</td><td>​</td><td> 61,204</td><td>​</td><td>​</td><td> 8,095</td></tr><tr><td>Straight-line lease loss</td><td>​</td><td> </td><td> 9,866</td><td>​</td><td> </td><td> 25,234</td><td>​</td><td> </td><td> 22,619</td></tr><tr><td>Income from unconsolidated entities</td><td>​</td><td> </td><td> (375,663)</td><td>​</td><td> </td><td> (647,977)</td><td>​</td><td> </td><td> (782,837)</td></tr><tr><td>Distributions of income from unconsolidated entities</td><td>​</td><td> </td><td> 458,709</td><td>​</td><td> </td><td> 561,583</td><td>​</td><td> </td><td> 436,881</td></tr><tr><td>Changes in assets and liabilities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Tenant receivables and accrued revenue, net</td><td>​</td><td> </td><td> (11,802)</td><td>​</td><td> </td><td> 63,350</td><td>​</td><td> </td><td> 265,352</td></tr><tr><td>Deferred costs and other assets</td><td>​</td><td> </td><td> 24,423</td><td>​</td><td> </td><td> (104,567)</td><td>​</td><td> </td><td> (77,592)</td></tr><tr><td>Accounts payable, accrued expenses, intangibles, deferred revenues and other</td><td>​</td><td> </td><td> 245,513</td><td>​</td><td> </td><td> 190,103</td><td>​</td><td> </td><td> 203,968</td></tr><tr><td>Net cash provided by operating activities</td><td>​</td><td> </td><td> 3,930,793</td><td>​</td><td> </td><td> 3,766,604</td><td>​</td><td> </td><td> 3,637,402</td></tr><tr><td>CASH FLOWS FROM INVESTING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Acquisitions</td><td>​</td><td> </td><td> (65,829)</td><td>​</td><td> </td><td> (203,364)</td><td>​</td><td> </td><td> (257,080)</td></tr><tr><td>Funding of loans to related parties</td><td>​</td><td> </td><td> (15,250)</td><td>​</td><td> </td><td> (132,857)</td><td>​</td><td> </td><td> (15,848)</td></tr><tr><td>Repayments of loans to related parties</td><td>​</td><td> </td><td> 16,188</td><td>​</td><td> </td><td> 82,371</td><td>​</td><td> </td><td> 14,027</td></tr><tr><td>Capital expenditures, net</td><td>​</td><td> </td><td> (793,283)</td><td>​</td><td> </td><td> (650,024)</td><td>​</td><td> </td><td> (527,935)</td></tr><tr><td>Cash impact from the consolidation of properties</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 20,988</td><td>​</td><td> </td><td> 5,595</td></tr><tr><td>Net proceeds from sale of assets</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 59,658</td><td>​</td><td> </td><td> 3,000</td></tr><tr><td>Investments in unconsolidated entities</td><td>​</td><td> </td><td> (83,961)</td><td>​</td><td> </td><td> (235,792)</td><td>​</td><td> </td><td> (56,901)</td></tr><tr><td>Purchase of short-term investments</td><td>​</td><td>​</td><td> (1,000,000)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Purchase of equity instruments</td><td>​</td><td> </td><td> (31,742)</td><td>​</td><td> </td><td> (66,140)</td><td>​</td><td> </td><td> (33,605)</td></tr><tr><td>Proceeds from sales of equity instruments</td><td>​</td><td> </td><td> 304,129</td><td>​</td><td> </td><td> 26,086</td><td>​</td><td> </td><td> 65,504</td></tr><tr><td>Insurance proceeds for property restoration</td><td>​</td><td>​</td><td> 7,427</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 7,200</td></tr><tr><td>Distributions of capital from unconsolidated entities and other </td><td>​</td><td> </td><td> 299,140</td><td>​</td><td> </td><td> 472,510</td><td>​</td><td> </td><td> 243,279</td></tr><tr><td>Net cash used in investing activities</td><td>​</td><td> </td><td> (1,363,181)</td><td>​</td><td> </td><td> (626,564)</td><td>​</td><td> </td><td> (552,764)</td></tr><tr><td>CASH FLOWS FROM FINANCING ACTIVITIES:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Proceeds from sales of common stock and other, net of transaction costs</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td><td>​</td><td> </td><td> (328)</td></tr><tr><td>Purchase of shares related to stock grant recipients' tax withholdings</td><td>​</td><td>​</td><td> (5,795)</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> (2,318)</td></tr><tr><td>Redemption of limited partner units</td><td>​</td><td> </td><td> (13,524)</td><td>​</td><td> </td><td> (1,852)</td><td>​</td><td> </td><td> (2,220)</td></tr><tr><td>Purchase of treasury stock</td><td>​</td><td>​</td><td> (140,593)</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Preferred unit redemptions</td><td>​</td><td>​</td><td> (2,500)</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td></tr><tr><td>Proceeds from the special purpose acquisition company IPO, net of transaction costs</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> 338,121</td></tr><tr><td>Proceeds from (establishment of) trust account for special purpose acquisition company </td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> 345,000</td><td>​</td><td> </td><td> (345,000)</td></tr><tr><td>Liquidation of special purpose acquisition company</td><td>​</td><td> </td><td> -</td><td>​</td><td> </td><td> (345,000)</td><td>​</td><td> </td><td> -</td></tr><tr><td>Distributions to noncontrolling interest holders in properties</td><td>​</td><td> </td><td> (41,956)</td><td>​</td><td> </td><td> (27,741)</td><td>​</td><td> </td><td> (5,024)</td></tr><tr><td>Contributions from noncontrolling interest holders in properties</td><td>​</td><td> </td><td> 9,813</td><td>​</td><td> </td><td> 29,681</td><td>​</td><td> </td><td> 20,902</td></tr><tr><td>Preferred distributions of the Operating Partnership</td><td>​</td><td> </td><td> (1,900)</td><td>​</td><td> </td><td> (1,915)</td><td>​</td><td> </td><td> (1,915)</td></tr><tr><td>Distributions to stockholders and preferred dividends</td><td>​</td><td> </td><td> (2,439,233)</td><td>​</td><td> </td><td> (2,264,007)</td><td>​</td><td> </td><td> (2,351,764)</td></tr><tr><td>Distributions to limited partners</td><td>​</td><td> </td><td> (355,548)</td><td>​</td><td> </td><td> (326,550)</td><td>​</td><td> </td><td> (337,021)</td></tr><tr><td>Cash paid to extinguish debt</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> -</td><td>​</td><td>​</td><td> (50,156)</td></tr><tr><td>Proceeds from issuance of debt, net of transaction costs</td><td>​</td><td> </td><td> 3,629,840</td><td>​</td><td> </td><td> 3,449,403</td><td>​</td><td> </td><td> 9,251,217</td></tr><tr><td>Repayments of debt</td><td>​</td><td> </td><td> (2,658,525)</td><td>​</td><td> </td><td> (3,721,864)</td><td>​</td><td> </td><td> (10,076,809)</td></tr><tr><td>Net cash used in financing activities</td><td>​</td><td> </td><td> (2,020,249)</td><td>​</td><td> </td><td> (3,052,348)</td><td>​</td><td> </td><td> (3,562,315)</td></tr><tr><td>INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS</td><td>​</td><td> </td><td> 547,363</td><td>​</td><td> </td><td> 87,692</td><td>​</td><td> </td><td> (477,677)</td></tr><tr><td>CASH AND CASH EQUIVALENTS, beginning of period</td><td>​</td><td> </td><td> 621,628</td><td>​</td><td> </td><td> 533,936</td><td>​</td><td> </td><td> 1,011,613</td></tr><tr><td>CASH AND CASH EQUIVALENTS, end of period</td><td>​</td><td>$</td><td> 1,168,991</td><td>​</td><td>$</td><td> 621,628</td><td>​</td><td>$</td><td> 533,936</td></tr></table>The accompanying notes are an integral part of these statements. ​ ​ 88 , Simon Property Group, Inc. Consolidated Statements of Equity (Dollars in thousands) <table><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th></tr><tr><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th colspan="2">Accumulated Other</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Comprehensive</th><th>​</th><th colspan="2">Capital in</th><th>​</th><th>​</th><th>​</th><th>​</th><th colspan="2">Common Stock</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th>​</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Preferred</th><th>​</th><th colspan="2">Common</th><th>​</th><th colspan="2">Income</th><th>​</th><th colspan="2">Excess of Par</th><th>​</th><th colspan="2">Accumulated</th><th>​</th><th colspan="2">Held in</th><th>​</th><th colspan="2">Noncontrolling</th><th>​</th><th colspan="2">Total</th><th> </th></tr><tr><th>​</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">Stock</th><th>​</th><th colspan="2">(Loss)</th><th>​</th><th colspan="2">Value</th><th>​</th><th colspan="2">Deficit</th><th>​</th><th colspan="2">Treasury</th><th>​</th><th colspan="2">Interests</th><th>​</th><th colspan="2">Equity</th><th> </th></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Balance at December 31, 2020</td><td>​</td><td>$</td><td> 42,091</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (188,675)</td><td>​</td><td>$</td><td> 11,179,688</td><td>​</td><td>$</td><td> (6,102,314)</td><td>​</td><td>$</td><td> (1,891,352)</td><td>​</td><td>$</td><td> 432,874</td><td>​</td><td>$</td><td> 3,472,346</td><td>​</td></tr><tr><td>Exchange of limited partner units (58,571 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 539</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (539)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (80,012 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (9,229)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 9,229</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (15,705 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,061)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (159)</td><td>​</td><td>​</td><td> (2,220)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 19,673</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 17,755</td><td>​</td><td>​</td><td> 17,755</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (20,374 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 5,760</td><td>​</td><td>​</td><td> (44,319)</td><td>​</td><td>​</td><td> (2,318)</td><td>​</td><td>​</td><td> 18,494</td><td>​</td><td>​</td><td> (22,383)</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 44,676</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,438</td><td>​</td><td>​</td><td> 51,114</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (33,932)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (4,840)</td><td>​</td><td>​</td><td> (38,772)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (886)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (128)</td><td>​</td><td>​</td><td> (1,014)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (6,369)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (916)</td><td>​</td><td>​</td><td> (7,285)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 3,489</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 554</td><td>​</td><td> </td><td> 4,043</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 18,620</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (18,620)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,926,706)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (276,698)</td><td>​</td><td>​</td><td> (2,203,404)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td><td>​</td><td> (2,708)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and a $3,419 loss attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,249,631</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 320,580</td><td>​</td><td>​</td><td> 2,570,211</td><td>​</td></tr><tr><td>Balance at December 31, 2021</td><td>​</td><td>$</td><td> 41,763</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (185,186)</td><td>​</td><td>$</td><td> 11,212,990</td><td>​</td><td>$</td><td> (5,823,708)</td><td>​</td><td>$</td><td> (1,884,441)</td><td>​</td><td>$</td><td> 491,533</td><td>​</td><td>$</td><td> 3,852,985</td><td>​</td></tr><tr><td>Exchange of limited partner units (2,680 common shares, Note 8)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Series J preferred stock premium amortization</td><td>​</td><td>​</td><td> (328)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (328)</td><td>​</td></tr><tr><td>Stock incentive program (208,063 common shares, net)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (27,637)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 27,637</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Redemption of limited partner units (14,740 units)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,708)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (144)</td><td>​</td><td>​</td><td> (1,852)</td><td>​</td></tr><tr><td>Amortization of stock incentive</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 23,670</td><td>​</td></tr><tr><td>Treasury stock purchase (1,830,022 shares)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (180,387)</td><td>​</td></tr><tr><td>Long-term incentive performance units</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 14,845</td><td>​</td><td>​</td><td> 14,845</td><td>​</td></tr><tr><td>Issuance of unit equivalents and other (46,555 common shares repurchased)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,769)</td><td>​</td><td>​</td><td> 21,206</td><td>​</td><td>​</td><td> (6,788)</td><td>​</td><td>​</td><td> 10,600</td><td>​</td><td>​</td><td> 22,249</td><td>​</td></tr><tr><td>Unrealized gain on hedging activities</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 47,888</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 6,920</td><td>​</td><td>​</td><td> 54,808</td><td>​</td></tr><tr><td>Currency translation adjustments</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (24,427)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (3,692)</td><td>​</td><td>​</td><td> (28,119)</td><td>​</td></tr><tr><td>Changes in available-for-sale securities and other</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,755)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (254)</td><td>​</td><td>​</td><td> (2,009)</td><td>​</td></tr><tr><td>Net gain reclassified from accumulated other comprehensive loss into earnings</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,393)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (202)</td><td>​</td><td>​</td><td> (1,595)</td><td>​</td></tr><tr><td>Other comprehensive income</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 20,313</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,772</td><td>​</td><td>​</td><td> 23,085</td><td>​</td></tr><tr><td>Adjustment to limited partners' interest from change in ownership in the Operating Partnership</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 28,308</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (28,308)</td><td>​</td><td>​</td><td> -</td><td>​</td></tr><tr><td>Distributions to common stockholders and limited partners, excluding Operating Partnership preferred interests</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (2,264,007)</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (326,550)</td><td>​</td><td>​</td><td> (2,590,557)</td><td>​</td></tr><tr><td>Distribution to other noncontrolling interest partners</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td><td>​</td><td> (1,362)</td><td>​</td></tr><tr><td>Net income, excluding $1,915 attributable to preferred interests in the Operating Partnership and $1,166 attributable to noncontrolling redeemable interests in properties</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 2,139,535</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td> 309,769</td><td>​</td><td>​</td><td> 2,449,304</td><td>​</td></tr><tr><td>Balance at December 31, 2022</td><td>​</td><td>$</td><td> 41,435</td><td>​</td><td>$</td><td> 34</td><td>​</td><td>$</td><td> (164,873)</td><td>​</td><td>$</td><td> 11,232,881</td><td>​</td><td>$</td><td> (5,926,974)</td><td>​</td><td>$</td><td> (2,043,979)</td><td>​</td><td>$</td><td> 473,128</td><td>​</td><td>$</td><td> 3,611,652</td><td>​</td></tr></table>89 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands, except per share amounts)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">REVENUES:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Rental revenues</td><td>$</td><td>1,607,486 </td><td></td><td colspan="3"></td><td>$</td><td>1,607,685 </td><td></td><td colspan="3"></td><td>$</td><td>1,424,531 </td><td></td></tr><tr><td colspan="3">Fee and other income</td><td colspan="2">203,677 </td><td></td><td colspan="3"></td><td colspan="2">192,310 </td><td></td><td colspan="3"></td><td colspan="2">164,679 </td><td></td></tr><tr><td colspan="3">Total revenues</td><td colspan="2">1,811,163 </td><td></td><td colspan="3"></td><td colspan="2">1,799,995 </td><td></td><td colspan="3"></td><td colspan="2">1,589,210 </td><td></td></tr><tr><td colspan="3">EXPENSES:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating</td><td colspan="2">(905,158)</td><td></td><td colspan="3"></td><td colspan="2">(873,911)</td><td></td><td colspan="3"></td><td colspan="2">(797,315)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">(434,273)</td><td></td><td colspan="3"></td><td colspan="2">(504,502)</td><td></td><td colspan="3"></td><td colspan="2">(412,347)</td><td></td></tr><tr><td colspan="3">General and administrative</td><td colspan="2">(162,883)</td><td></td><td colspan="3"></td><td colspan="2">(133,731)</td><td></td><td colspan="3"></td><td colspan="2">(134,545)</td><td></td></tr><tr><td colspan="3">(Expense) benefit from deferred compensation plan liability</td><td colspan="2">(12,162)</td><td></td><td colspan="3"></td><td colspan="2">9,617 </td><td></td><td colspan="3"></td><td colspan="2">(9,847)</td><td></td></tr><tr><td colspan="3">Impairment losses, transaction related costs and other</td><td colspan="2">(50,691)</td><td></td><td colspan="3"></td><td colspan="2">(31,722)</td><td></td><td colspan="3"></td><td colspan="2">(13,815)</td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="2">(1,565,167)</td><td></td><td colspan="3"></td><td colspan="2">(1,534,249)</td><td></td><td colspan="3"></td><td colspan="2">(1,367,869)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income (loss) from partially owned entities</td><td colspan="2">38,689 </td><td></td><td colspan="3"></td><td colspan="2">(461,351)</td><td></td><td colspan="3"></td><td colspan="2">130,517 </td><td></td></tr><tr><td colspan="3">Income from real estate fund investments</td><td colspan="2">1,590 </td><td></td><td colspan="3"></td><td colspan="2">3,541 </td><td></td><td colspan="3"></td><td colspan="2">11,066 </td><td></td></tr><tr><td colspan="3">Interest and other investment income, net</td><td colspan="2">41,697 </td><td></td><td colspan="3"></td><td colspan="2">19,869 </td><td></td><td colspan="3"></td><td colspan="2">4,612 </td><td></td></tr><tr><td colspan="3">Income (loss) from deferred compensation plan assets</td><td colspan="2">12,162 </td><td></td><td colspan="3"></td><td colspan="2">(9,617)</td><td></td><td colspan="3"></td><td colspan="2">9,847 </td><td></td></tr><tr><td colspan="3">Interest and debt expense</td><td colspan="2">(349,223)</td><td></td><td colspan="3"></td><td colspan="2">(279,765)</td><td></td><td colspan="3"></td><td colspan="2">(231,096)</td><td></td></tr><tr><td colspan="3">Net gains on disposition of wholly owned and partially owned assets</td><td colspan="2">71,199 </td><td></td><td colspan="3"></td><td colspan="2">100,625 </td><td></td><td colspan="3"></td><td colspan="2">50,770 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="2">62,110 </td><td></td><td colspan="3"></td><td colspan="2">(360,952)</td><td></td><td colspan="3"></td><td colspan="2">197,057 </td><td></td></tr><tr><td colspan="3">Income tax (expense) benefit</td><td colspan="2">(29,222)</td><td></td><td colspan="3"></td><td colspan="2">(21,660)</td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td></tr><tr><td colspan="3">Net income (loss) </td><td colspan="2">32,888 </td><td></td><td colspan="3"></td><td colspan="2">(382,612)</td><td></td><td colspan="3"></td><td colspan="2">207,553 </td><td></td></tr><tr><td colspan="3">Less net loss (income) attributable to noncontrolling interests in:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Consolidated subsidiaries</td><td colspan="2">75,967 </td><td></td><td colspan="3"></td><td colspan="2">5,737 </td><td></td><td colspan="3"></td><td colspan="2">(24,014)</td><td></td></tr><tr><td colspan="3">Operating Partnership</td><td colspan="2">(3,361)</td><td></td><td colspan="3"></td><td colspan="2">30,376 </td><td></td><td colspan="3"></td><td colspan="2">(7,540)</td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to Vornado</td><td colspan="2">105,494 </td><td></td><td colspan="3"></td><td colspan="2">(346,499)</td><td></td><td colspan="3"></td><td colspan="2">175,999 </td><td></td></tr><tr><td colspan="3">Preferred share dividends</td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(62,116)</td><td></td><td colspan="3"></td><td colspan="2">(65,880)</td><td></td></tr><tr><td colspan="3">Series K preferred share issuance costs</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9,033)</td><td></td></tr><tr><td colspan="3">NET INCOME (LOSS) attributable to common shareholders</td><td>$</td><td>43,378 </td><td></td><td colspan="3"></td><td>$</td><td>(408,615)</td><td></td><td colspan="3"></td><td>$</td><td>101,086 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - BASIC:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,005 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">191,551 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">INCOME (LOSS) PER COMMON SHARE - DILUTED:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3">Net income (loss) per common share</td><td>$</td><td>0.23 </td><td></td><td colspan="3"></td><td>$</td><td>(2.13)</td><td></td><td colspan="3"></td><td>$</td><td>0.53 </td><td></td></tr><tr><td colspan="3">Weighted average shares outstanding</td><td colspan="2">191,856 </td><td></td><td colspan="3"></td><td colspan="2">191,775 </td><td></td><td colspan="3"></td><td colspan="2">192,122 </td><td></td></tr></table>See notes to consolidated financial statements. 63 , VORNADO REALTY TRUST CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="15">For the Year Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income (loss) </td><td>$</td><td>32,888 </td><td></td><td colspan="3"></td><td>$</td><td>(382,612)</td><td></td><td colspan="3"></td><td>$</td><td>207,553 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Change in fair value of interest rate swaps and other</td><td colspan="2">(112,051)</td><td></td><td colspan="3"></td><td colspan="2">190,493 </td><td></td><td colspan="3"></td><td colspan="2">51,338 </td><td></td></tr><tr><td colspan="3">Other comprehensive (loss) income of nonconsolidated subsidiaries</td><td colspan="2">(8,286)</td><td></td><td colspan="3"></td><td colspan="2">18,874 </td><td></td><td colspan="3"></td><td colspan="2">10,275 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive (loss) income </td><td colspan="2">(87,449)</td><td></td><td colspan="3"></td><td colspan="2">(173,245)</td><td></td><td colspan="3"></td><td colspan="2">269,166 </td><td></td></tr><tr><td colspan="3">Less comprehensive loss (income) attributable to noncontrolling interests</td><td colspan="2">85,665 </td><td></td><td colspan="3"></td><td colspan="2">19,247 </td><td></td><td colspan="3"></td><td colspan="2">(35,602)</td><td></td></tr><tr><td colspan="3">Comprehensive (loss) income attributable to Vornado</td><td>$</td><td>(1,784)</td><td></td><td colspan="3"></td><td>$</td><td>(153,998)</td><td></td><td colspan="3"></td><td>$</td><td>233,564 </td><td></td></tr></table>See notes to consolidated financial statements. 64
q_com066
Compare the impact of tenant bankruptcies on Simon Property Group and Vornado Realty Trust.
Simon Property Group faces potential adverse effects from tenant bankruptcies, which can lead to lease rejections, delays in rent collection, and significant expenses in re-tenanting spaces. The company has experienced tenant bankruptcies in the past and continues to monitor and manage this risk. Vornado Realty Trust also faces risks from tenant bankruptcies, which can result in delays in enforcing landlord rights, potential non-recovery of past-due balances, and operational difficulties in leasing vacant spaces. The company has had tenants declare bankruptcy in the past and continues to manage this risk. Both companies face similar challenges from tenant bankruptcies, including delays in rent collection and re-tenanting expenses, and they mitigate these risks through strategic leasing and tenant management.
Comparison
14;13, 21
0001558370-24-001532;0000899689-24-000005
Item 1A. Risk Factors;ITEM 1A. RISK FACTORS
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 14: current or future effective rents or expense recovery charges. Certain other tenants are entitled to modify the economic or other terms of, or terminate, their existing leases with us in the event of such closures. Additionally, corporate merger or consolidation activity among department stores and other national retailers typically results in the closure of duplicate or geographically overlapping store locations. If a department store or large nationally recognized tenant were to close its stores at our properties, we may experience difficulty and delay and incur significant expense in re-tenanting the space, as well as in leasing spaces in areas adjacent to the vacant store, at attractive rates, or at all. Additionally, department store or tenant closures may result in decreased customer traffic, which could lead to decreased sales at our properties. If the sales of stores operating in our properties were to decline significantly due to the closing of anchor stores or other national retailers, adverse economic conditions or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of any default by a tenant, we may not be able to fully recover, and/or may experience delays and costs in enforcing our rights as landlord to recover, amounts due to us under the terms of our leases with such parties. We face potential adverse effects from tenant bankruptcies. Bankruptcy filings by retailers can occur regularly in the course of our operations. Although we have not seen an increase in tenant bankruptcies in the last few years, in previous years a number of companies in the retail industry, including certain of our tenants, declared bankruptcy. If a tenant files for bankruptcy, the tenant may have the right to reject and terminate one or more of its leases with us, and we cannot be sure that it will affirm one or more of its leases and continue to make rental payments to us in a timely manner. A bankruptcy filing by, or relating to, one of our tenants would generally prohibit us from evicting this tenant, and bar all efforts by us to collect pre-bankruptcy debts from that tenant, or from their property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of its bankruptcy. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If a lease is rejected, the unsecured claim we hold against a bankrupt tenant might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims, and there are restrictions under bankruptcy laws that limit the amount of the claim we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. In addition, we may make lease modifications either pre- or post-bankruptcy for certain tenants undergoing significant financial distress in order for them to continue as a going concern. Furthermore, we may be required to incur significant expense in re-tenanting the space formerly leased to the bankrupt tenant. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant or a national tenant with multiple locations, may require a substantial redevelopment of its space, the success of which cannot be assured, and may make the re-tenanting of its space difficult and costly. Any such bankruptcies also make it more difficult to lease the remainder of the space at the affected property or properties. Future tenant bankruptcies may strain our resources and impact our ability to successfully execute our re-leasing strategy and could materially and adversely affect us. Vacant space at our properties could materially and adversely affect us. Certain of our properties have had vacant space available for prospective tenants, and those properties may continue to experience, and other properties may commence experiencing, such oversupply in the future. Among other causes, (1) in recent years there had been an increased number of bankruptcies of anchor stores and other national retailers, as well as store closures, and (2) there has been lower demand from retail tenants for space, due to certain retailers increasing their use of e-commerce websites to distribute their merchandise. As a result of the increased bargaining power of creditworthy retail tenants, there is downward pressure on our rental rates and occupancy levels, and this increased bargaining power may also result in us having to increase our spend on tenant improvements and potentially make other lease modifications in order to attract or retain tenants, any of which, in the aggregate, could materially and adversely affect us. We may not be able to lease newly developed properties to or renew leases and relet space at existing properties with an appropriate mix of tenants or at desired rents, if at all. We may not be able to lease new properties to an appropriate mix of tenants that generates optimal customer traffic. Also, when leases for our existing properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. Tenant preferences for properties may also change over time, like recent trends towards right-sizing portfolios, repositioning space and locations and pursuing new store concepts, and our properties may no longer align with such preferences. If we fail to identify and secure the right blend of tenants at our newly developed and existing properties that offer diversified categories and uses, such as retail, specialty entertainment, restaurants, and health and wellness, and that keep up with evolving customer preferences, our properties may not appeal to the communities they serve. If we elect to pursue a "mixed use" 14 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 13: Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry. The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely impact our revenues and cash flows. The factors that affect the value of our real estate investments include, among other things: • global, national, regional and local economic conditions and geopolitical events; • competition from other available space, including co-working space and sub-leases; • local conditions such as an oversupply of space or a reduction in demand for real estate in the area; • how well we manage our properties; • the development and/or redevelopment of our properties; • changes in market rental rates; • trends in office real estate, including many tenants' preferences for space in modern amenitized buildings which may require the landlord to incur significant capital expenditures; • increased competition from online shopping and its impact on retail tenants and their demand for retail space; • the timing and costs associated with property improvements and rentals; • whether we are able to pass all or portions of any increases in operating costs through to tenants; • changes in real estate taxes and other expenses; • fluctuations in interest rates; • the ability of state and local governments to operate within their budgets; • whether tenants and users such as customers and shoppers consider a property attractive; • changes in consumer preferences adversely affecting retailers and retail store values; • changes in tenant space utilization; • the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; • consequences of any armed conflict involving, or terrorist attacks against, the United States or individual acts of violence in public spaces; • availability of financing on acceptable terms or at all; • inflation or deflation; • our ability to obtain adequate insurance; • government regulation, including changes in fiscal policies, taxation, and zoning laws; • potential liability and compliance costs associated with environmental or other laws or regulations; • natural disasters; • general competitive factors; • climate change; and • the impact of pandemics or outbreaks of other infectious diseases. The rents or sales proceeds we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors. If rental revenues, sales proceeds and/or occupancy levels decline, we generally would expect to have less cash available for operating costs, to pay indebtedness and for distribution to equity holders. In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline and maintenance costs can increase substantially in an inflationary environment. These factors may cause the value of our real estate assets to decline, which may result in non-cash impairment charges and the impact could be material. Real estate is a competitive business and that competition may adversely impact us. We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely impact the rents we can charge at those properties and our results of operations. Our commercial office properties are located primarily in highly developed areas of the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in the New York metropolitan area, which may be newer, more amenitized or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties and on the effective rents we are able to charge. 13 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 21: Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado's other trustees and officers have interests or positions in other entities that may compete with us. As of December 31, 2023, Interstate Properties, a New Jersey general partnership, and its partners beneficially owned an aggregate of approximately 7.0% of the common shares of beneficial interest of Vornado and 26.0% of the common stock of Alexander's, which is described below. Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the three partners of Interstate Properties. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's. Because of these overlapping interests, Mr. Roth and Interstate Properties and its partners may have substantial influence over Vornado, and therefore over the Operating Partnership. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Messrs. Roth, Mandelbaum and Wight and Interstate Properties and our other equity holders. In addition, Mr. Roth, Interstate Properties and its partners, and Alexander's currently and may in the future engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, competition for properties and tenants, possible corporate transactions such as acquisitions and other strategic decisions affecting the future of these entities. We manage and lease the real estate assets of Interstate Properties pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. See Note 22 – Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for additional information. There may be conflicts of interest between Alexander's and us. As of December 31, 2023, we owned 32.4% of the outstanding common stock of Alexander's. Alexander's is a REIT that has five properties, which are located in the greater New York metropolitan area. In addition to the 2.3% that they indirectly own through Vornado, Interstate Properties, which is described above, and its partners owned 26.0% of the outstanding common stock of Alexander's as of December 31, 2023. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's and general partners of Interstate Properties. Ms. Mandakini Puri is a Trustee of Vornado and Director of Alexander's. We manage, develop and lease Alexander's properties under management, development and leasing agreements under which we receive annual fees from Alexander's. These agreements are described in Note 5 – Investments in Partially Owned Entities to our consolidated financial statements in this Annual Report on Form 10-K. RISKS RELATED TO OUR COMMON SHARES AND OPERATING PARTNERSHIP CLASS A UNITS The trading price of Vornado's common shares has been volatile and may continue to fluctuate. The trading price of Vornado's common shares has been volatile and may continue to fluctuate widely as a result of several factors, many of which are outside our control. In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies. These broad market fluctuations have in the past and may in the future adversely affect the market price of Vornado's common shares and the redemption price of the Operating Partnership's Class A units. These factors include: •our financial condition and performance; •the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; •actual or anticipated quarterly fluctuations in our operating results and financial condition; •our dividend policy; •the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; •uncertainty and volatility in the equity and credit markets; •interest rates increases; •changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; •failure to meet analysts' revenue or earnings estimates; •speculation in the press or investment community; •strategic actions by us or our competitors, such as acquisitions or restructurings; •the extent of institutional investor interest in us; •the extent of short-selling of Vornado common shares and the shares of our competitors; •fluctuations in the stock price and operating results of our competitors; 21
current or future effective rents or expense recovery charges. Certain other tenants are entitled to modify the economic or other terms of, or terminate, their existing leases with us in the event of such closures. Additionally, corporate merger or consolidation activity among department stores and other national retailers typically results in the closure of duplicate or geographically overlapping store locations. If a department store or large nationally recognized tenant were to close its stores at our properties, we may experience difficulty and delay and incur significant expense in re-tenanting the space, as well as in leasing spaces in areas adjacent to the vacant store, at attractive rates, or at all. Additionally, department store or tenant closures may result in decreased customer traffic, which could lead to decreased sales at our properties. If the sales of stores operating in our properties were to decline significantly due to the closing of anchor stores or other national retailers, adverse economic conditions or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of any default by a tenant, we may not be able to fully recover, and/or may experience delays and costs in enforcing our rights as landlord to recover, amounts due to us under the terms of our leases with such parties. We face potential adverse effects from tenant bankruptcies. Bankruptcy filings by retailers can occur regularly in the course of our operations. Although we have not seen an increase in tenant bankruptcies in the last few years, in previous years a number of companies in the retail industry, including certain of our tenants, declared bankruptcy. If a tenant files for bankruptcy, the tenant may have the right to reject and terminate one or more of its leases with us, and we cannot be sure that it will affirm one or more of its leases and continue to make rental payments to us in a timely manner. A bankruptcy filing by, or relating to, one of our tenants would generally prohibit us from evicting this tenant, and bar all efforts by us to collect pre-bankruptcy debts from that tenant, or from their property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of its bankruptcy. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If a lease is rejected, the unsecured claim we hold against a bankrupt tenant might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims, and there are restrictions under bankruptcy laws that limit the amount of the claim we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. In addition, we may make lease modifications either pre- or post-bankruptcy for certain tenants undergoing significant financial distress in order for them to continue as a going concern. Furthermore, we may be required to incur significant expense in re-tenanting the space formerly leased to the bankrupt tenant. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant or a national tenant with multiple locations, may require a substantial redevelopment of its space, the success of which cannot be assured, and may make the re-tenanting of its space difficult and costly. Any such bankruptcies also make it more difficult to lease the remainder of the space at the affected property or properties. Future tenant bankruptcies may strain our resources and impact our ability to successfully execute our re-leasing strategy and could materially and adversely affect us. Vacant space at our properties could materially and adversely affect us. Certain of our properties have had vacant space available for prospective tenants, and those properties may continue to experience, and other properties may commence experiencing, such oversupply in the future. Among other causes, (1) in recent years there had been an increased number of bankruptcies of anchor stores and other national retailers, as well as store closures, and (2) there has been lower demand from retail tenants for space, due to certain retailers increasing their use of e-commerce websites to distribute their merchandise. As a result of the increased bargaining power of creditworthy retail tenants, there is downward pressure on our rental rates and occupancy levels, and this increased bargaining power may also result in us having to increase our spend on tenant improvements and potentially make other lease modifications in order to attract or retain tenants, any of which, in the aggregate, could materially and adversely affect us. We may not be able to lease newly developed properties to or renew leases and relet space at existing properties with an appropriate mix of tenants or at desired rents, if at all. We may not be able to lease new properties to an appropriate mix of tenants that generates optimal customer traffic. Also, when leases for our existing properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. Tenant preferences for properties may also change over time, like recent trends towards right-sizing portfolios, repositioning space and locations and pursuing new store concepts, and our properties may no longer align with such preferences. If we fail to identify and secure the right blend of tenants at our newly developed and existing properties that offer diversified categories and uses, such as retail, specialty entertainment, restaurants, and health and wellness, and that keep up with evolving customer preferences, our properties may not appeal to the communities they serve. If we elect to pursue a "mixed use" 14 , Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry. The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely impact our revenues and cash flows. The factors that affect the value of our real estate investments include, among other things: • global, national, regional and local economic conditions and geopolitical events; • competition from other available space, including co-working space and sub-leases; • local conditions such as an oversupply of space or a reduction in demand for real estate in the area; • how well we manage our properties; • the development and/or redevelopment of our properties; • changes in market rental rates; • trends in office real estate, including many tenants' preferences for space in modern amenitized buildings which may require the landlord to incur significant capital expenditures; • increased competition from online shopping and its impact on retail tenants and their demand for retail space; • the timing and costs associated with property improvements and rentals; • whether we are able to pass all or portions of any increases in operating costs through to tenants; • changes in real estate taxes and other expenses; • fluctuations in interest rates; • the ability of state and local governments to operate within their budgets; • whether tenants and users such as customers and shoppers consider a property attractive; • changes in consumer preferences adversely affecting retailers and retail store values; • changes in tenant space utilization; • the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; • consequences of any armed conflict involving, or terrorist attacks against, the United States or individual acts of violence in public spaces; • availability of financing on acceptable terms or at all; • inflation or deflation; • our ability to obtain adequate insurance; • government regulation, including changes in fiscal policies, taxation, and zoning laws; • potential liability and compliance costs associated with environmental or other laws or regulations; • natural disasters; • general competitive factors; • climate change; and • the impact of pandemics or outbreaks of other infectious diseases. The rents or sales proceeds we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors. If rental revenues, sales proceeds and/or occupancy levels decline, we generally would expect to have less cash available for operating costs, to pay indebtedness and for distribution to equity holders. In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline and maintenance costs can increase substantially in an inflationary environment. These factors may cause the value of our real estate assets to decline, which may result in non-cash impairment charges and the impact could be material. Real estate is a competitive business and that competition may adversely impact us. We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely impact the rents we can charge at those properties and our results of operations. Our commercial office properties are located primarily in highly developed areas of the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in the New York metropolitan area, which may be newer, more amenitized or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties and on the effective rents we are able to charge. 13 , Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado's other trustees and officers have interests or positions in other entities that may compete with us. As of December 31, 2023, Interstate Properties, a New Jersey general partnership, and its partners beneficially owned an aggregate of approximately 7.0% of the common shares of beneficial interest of Vornado and 26.0% of the common stock of Alexander's, which is described below. Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the three partners of Interstate Properties. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's. Because of these overlapping interests, Mr. Roth and Interstate Properties and its partners may have substantial influence over Vornado, and therefore over the Operating Partnership. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Messrs. Roth, Mandelbaum and Wight and Interstate Properties and our other equity holders. In addition, Mr. Roth, Interstate Properties and its partners, and Alexander's currently and may in the future engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, competition for properties and tenants, possible corporate transactions such as acquisitions and other strategic decisions affecting the future of these entities. We manage and lease the real estate assets of Interstate Properties pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. See Note 22 – Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for additional information. There may be conflicts of interest between Alexander's and us. As of December 31, 2023, we owned 32.4% of the outstanding common stock of Alexander's. Alexander's is a REIT that has five properties, which are located in the greater New York metropolitan area. In addition to the 2.3% that they indirectly own through Vornado, Interstate Properties, which is described above, and its partners owned 26.0% of the outstanding common stock of Alexander's as of December 31, 2023. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's and general partners of Interstate Properties. Ms. Mandakini Puri is a Trustee of Vornado and Director of Alexander's. We manage, develop and lease Alexander's properties under management, development and leasing agreements under which we receive annual fees from Alexander's. These agreements are described in Note 5 – Investments in Partially Owned Entities to our consolidated financial statements in this Annual Report on Form 10-K. RISKS RELATED TO OUR COMMON SHARES AND OPERATING PARTNERSHIP CLASS A UNITS The trading price of Vornado's common shares has been volatile and may continue to fluctuate. The trading price of Vornado's common shares has been volatile and may continue to fluctuate widely as a result of several factors, many of which are outside our control. In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies. These broad market fluctuations have in the past and may in the future adversely affect the market price of Vornado's common shares and the redemption price of the Operating Partnership's Class A units. These factors include: •our financial condition and performance; •the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; •actual or anticipated quarterly fluctuations in our operating results and financial condition; •our dividend policy; •the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; •uncertainty and volatility in the equity and credit markets; •interest rates increases; •changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; •failure to meet analysts' revenue or earnings estimates; •speculation in the press or investment community; •strategic actions by us or our competitors, such as acquisitions or restructurings; •the extent of institutional investor interest in us; •the extent of short-selling of Vornado common shares and the shares of our competitors; •fluctuations in the stock price and operating results of our competitors; 21
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 14: current or future effective rents or expense recovery charges. Certain other tenants are entitled to modify the economic or other terms of, or terminate, their existing leases with us in the event of such closures. Additionally, corporate merger or consolidation activity among department stores and other national retailers typically results in the closure of duplicate or geographically overlapping store locations. If a department store or large nationally recognized tenant were to close its stores at our properties, we may experience difficulty and delay and incur significant expense in re-tenanting the space, as well as in leasing spaces in areas adjacent to the vacant store, at attractive rates, or at all. Additionally, department store or tenant closures may result in decreased customer traffic, which could lead to decreased sales at our properties. If the sales of stores operating in our properties were to decline significantly due to the closing of anchor stores or other national retailers, adverse economic conditions or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of any default by a tenant, we may not be able to fully recover, and/or may experience delays and costs in enforcing our rights as landlord to recover, amounts due to us under the terms of our leases with such parties. We face potential adverse effects from tenant bankruptcies. Bankruptcy filings by retailers can occur regularly in the course of our operations. Although we have not seen an increase in tenant bankruptcies in the last few years, in previous years a number of companies in the retail industry, including certain of our tenants, declared bankruptcy. If a tenant files for bankruptcy, the tenant may have the right to reject and terminate one or more of its leases with us, and we cannot be sure that it will affirm one or more of its leases and continue to make rental payments to us in a timely manner. A bankruptcy filing by, or relating to, one of our tenants would generally prohibit us from evicting this tenant, and bar all efforts by us to collect pre-bankruptcy debts from that tenant, or from their property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of its bankruptcy. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If a lease is rejected, the unsecured claim we hold against a bankrupt tenant might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims, and there are restrictions under bankruptcy laws that limit the amount of the claim we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. In addition, we may make lease modifications either pre- or post-bankruptcy for certain tenants undergoing significant financial distress in order for them to continue as a going concern. Furthermore, we may be required to incur significant expense in re-tenanting the space formerly leased to the bankrupt tenant. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant or a national tenant with multiple locations, may require a substantial redevelopment of its space, the success of which cannot be assured, and may make the re-tenanting of its space difficult and costly. Any such bankruptcies also make it more difficult to lease the remainder of the space at the affected property or properties. Future tenant bankruptcies may strain our resources and impact our ability to successfully execute our re-leasing strategy and could materially and adversely affect us. Vacant space at our properties could materially and adversely affect us. Certain of our properties have had vacant space available for prospective tenants, and those properties may continue to experience, and other properties may commence experiencing, such oversupply in the future. Among other causes, (1) in recent years there had been an increased number of bankruptcies of anchor stores and other national retailers, as well as store closures, and (2) there has been lower demand from retail tenants for space, due to certain retailers increasing their use of e-commerce websites to distribute their merchandise. As a result of the increased bargaining power of creditworthy retail tenants, there is downward pressure on our rental rates and occupancy levels, and this increased bargaining power may also result in us having to increase our spend on tenant improvements and potentially make other lease modifications in order to attract or retain tenants, any of which, in the aggregate, could materially and adversely affect us. We may not be able to lease newly developed properties to or renew leases and relet space at existing properties with an appropriate mix of tenants or at desired rents, if at all. We may not be able to lease new properties to an appropriate mix of tenants that generates optimal customer traffic. Also, when leases for our existing properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. Tenant preferences for properties may also change over time, like recent trends towards right-sizing portfolios, repositioning space and locations and pursuing new store concepts, and our properties may no longer align with such preferences. If we fail to identify and secure the right blend of tenants at our newly developed and existing properties that offer diversified categories and uses, such as retail, specialty entertainment, restaurants, and health and wellness, and that keep up with evolving customer preferences, our properties may not appeal to the communities they serve. If we elect to pursue a "mixed use" 14 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 13: Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry. The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely impact our revenues and cash flows. The factors that affect the value of our real estate investments include, among other things: • global, national, regional and local economic conditions and geopolitical events; • competition from other available space, including co-working space and sub-leases; • local conditions such as an oversupply of space or a reduction in demand for real estate in the area; • how well we manage our properties; • the development and/or redevelopment of our properties; • changes in market rental rates; • trends in office real estate, including many tenants' preferences for space in modern amenitized buildings which may require the landlord to incur significant capital expenditures; • increased competition from online shopping and its impact on retail tenants and their demand for retail space; • the timing and costs associated with property improvements and rentals; • whether we are able to pass all or portions of any increases in operating costs through to tenants; • changes in real estate taxes and other expenses; • fluctuations in interest rates; • the ability of state and local governments to operate within their budgets; • whether tenants and users such as customers and shoppers consider a property attractive; • changes in consumer preferences adversely affecting retailers and retail store values; • changes in tenant space utilization; • the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; • consequences of any armed conflict involving, or terrorist attacks against, the United States or individual acts of violence in public spaces; • availability of financing on acceptable terms or at all; • inflation or deflation; • our ability to obtain adequate insurance; • government regulation, including changes in fiscal policies, taxation, and zoning laws; • potential liability and compliance costs associated with environmental or other laws or regulations; • natural disasters; • general competitive factors; • climate change; and • the impact of pandemics or outbreaks of other infectious diseases. The rents or sales proceeds we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors. If rental revenues, sales proceeds and/or occupancy levels decline, we generally would expect to have less cash available for operating costs, to pay indebtedness and for distribution to equity holders. In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline and maintenance costs can increase substantially in an inflationary environment. These factors may cause the value of our real estate assets to decline, which may result in non-cash impairment charges and the impact could be material. Real estate is a competitive business and that competition may adversely impact us. We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely impact the rents we can charge at those properties and our results of operations. Our commercial office properties are located primarily in highly developed areas of the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in the New York metropolitan area, which may be newer, more amenitized or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties and on the effective rents we are able to charge. 13 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 21: Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado's other trustees and officers have interests or positions in other entities that may compete with us. As of December 31, 2023, Interstate Properties, a New Jersey general partnership, and its partners beneficially owned an aggregate of approximately 7.0% of the common shares of beneficial interest of Vornado and 26.0% of the common stock of Alexander's, which is described below. Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the three partners of Interstate Properties. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's. Because of these overlapping interests, Mr. Roth and Interstate Properties and its partners may have substantial influence over Vornado, and therefore over the Operating Partnership. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Messrs. Roth, Mandelbaum and Wight and Interstate Properties and our other equity holders. In addition, Mr. Roth, Interstate Properties and its partners, and Alexander's currently and may in the future engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, competition for properties and tenants, possible corporate transactions such as acquisitions and other strategic decisions affecting the future of these entities. We manage and lease the real estate assets of Interstate Properties pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. See Note 22 – Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for additional information. There may be conflicts of interest between Alexander's and us. As of December 31, 2023, we owned 32.4% of the outstanding common stock of Alexander's. Alexander's is a REIT that has five properties, which are located in the greater New York metropolitan area. In addition to the 2.3% that they indirectly own through Vornado, Interstate Properties, which is described above, and its partners owned 26.0% of the outstanding common stock of Alexander's as of December 31, 2023. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's and general partners of Interstate Properties. Ms. Mandakini Puri is a Trustee of Vornado and Director of Alexander's. We manage, develop and lease Alexander's properties under management, development and leasing agreements under which we receive annual fees from Alexander's. These agreements are described in Note 5 – Investments in Partially Owned Entities to our consolidated financial statements in this Annual Report on Form 10-K. RISKS RELATED TO OUR COMMON SHARES AND OPERATING PARTNERSHIP CLASS A UNITS The trading price of Vornado's common shares has been volatile and may continue to fluctuate. The trading price of Vornado's common shares has been volatile and may continue to fluctuate widely as a result of several factors, many of which are outside our control. In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies. These broad market fluctuations have in the past and may in the future adversely affect the market price of Vornado's common shares and the redemption price of the Operating Partnership's Class A units. These factors include: •our financial condition and performance; •the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; •actual or anticipated quarterly fluctuations in our operating results and financial condition; •our dividend policy; •the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; •uncertainty and volatility in the equity and credit markets; •interest rates increases; •changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; •failure to meet analysts' revenue or earnings estimates; •speculation in the press or investment community; •strategic actions by us or our competitors, such as acquisitions or restructurings; •the extent of institutional investor interest in us; •the extent of short-selling of Vornado common shares and the shares of our competitors; •fluctuations in the stock price and operating results of our competitors; 21
current or future effective rents or expense recovery charges. Certain other tenants are entitled to modify the economic or other terms of, or terminate, their existing leases with us in the event of such closures. Additionally, corporate merger or consolidation activity among department stores and other national retailers typically results in the closure of duplicate or geographically overlapping store locations. If a department store or large nationally recognized tenant were to close its stores at our properties, we may experience difficulty and delay and incur significant expense in re-tenanting the space, as well as in leasing spaces in areas adjacent to the vacant store, at attractive rates, or at all. Additionally, department store or tenant closures may result in decreased customer traffic, which could lead to decreased sales at our properties. If the sales of stores operating in our properties were to decline significantly due to the closing of anchor stores or other national retailers, adverse economic conditions or other reasons, tenants may be unable to pay their minimum rents or expense recovery charges. In the event of any default by a tenant, we may not be able to fully recover, and/or may experience delays and costs in enforcing our rights as landlord to recover, amounts due to us under the terms of our leases with such parties. We face potential adverse effects from tenant bankruptcies. Bankruptcy filings by retailers can occur regularly in the course of our operations. Although we have not seen an increase in tenant bankruptcies in the last few years, in previous years a number of companies in the retail industry, including certain of our tenants, declared bankruptcy. If a tenant files for bankruptcy, the tenant may have the right to reject and terminate one or more of its leases with us, and we cannot be sure that it will affirm one or more of its leases and continue to make rental payments to us in a timely manner. A bankruptcy filing by, or relating to, one of our tenants would generally prohibit us from evicting this tenant, and bar all efforts by us to collect pre-bankruptcy debts from that tenant, or from their property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of its bankruptcy. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If a lease is rejected, the unsecured claim we hold against a bankrupt tenant might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims, and there are restrictions under bankruptcy laws that limit the amount of the claim we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold. In addition, we may make lease modifications either pre- or post-bankruptcy for certain tenants undergoing significant financial distress in order for them to continue as a going concern. Furthermore, we may be required to incur significant expense in re-tenanting the space formerly leased to the bankrupt tenant. We continually seek to re-lease vacant spaces resulting from tenant terminations. The bankruptcy of a tenant, particularly an anchor tenant or a national tenant with multiple locations, may require a substantial redevelopment of its space, the success of which cannot be assured, and may make the re-tenanting of its space difficult and costly. Any such bankruptcies also make it more difficult to lease the remainder of the space at the affected property or properties. Future tenant bankruptcies may strain our resources and impact our ability to successfully execute our re-leasing strategy and could materially and adversely affect us. Vacant space at our properties could materially and adversely affect us. Certain of our properties have had vacant space available for prospective tenants, and those properties may continue to experience, and other properties may commence experiencing, such oversupply in the future. Among other causes, (1) in recent years there had been an increased number of bankruptcies of anchor stores and other national retailers, as well as store closures, and (2) there has been lower demand from retail tenants for space, due to certain retailers increasing their use of e-commerce websites to distribute their merchandise. As a result of the increased bargaining power of creditworthy retail tenants, there is downward pressure on our rental rates and occupancy levels, and this increased bargaining power may also result in us having to increase our spend on tenant improvements and potentially make other lease modifications in order to attract or retain tenants, any of which, in the aggregate, could materially and adversely affect us. We may not be able to lease newly developed properties to or renew leases and relet space at existing properties with an appropriate mix of tenants or at desired rents, if at all. We may not be able to lease new properties to an appropriate mix of tenants that generates optimal customer traffic. Also, when leases for our existing properties expire, the premises may not be relet or the terms of reletting, including the cost of allowances and concessions to tenants, may be less favorable than the current lease terms. Tenant preferences for properties may also change over time, like recent trends towards right-sizing portfolios, repositioning space and locations and pursuing new store concepts, and our properties may no longer align with such preferences. If we fail to identify and secure the right blend of tenants at our newly developed and existing properties that offer diversified categories and uses, such as retail, specialty entertainment, restaurants, and health and wellness, and that keep up with evolving customer preferences, our properties may not appeal to the communities they serve. If we elect to pursue a "mixed use" 14 , Our performance and the value of an investment in us are subject to risks associated with our real estate assets and with the real estate industry. The value of our real estate and the value of an investment in us fluctuates depending on conditions in the general economy and the real estate business. These conditions may also adversely impact our revenues and cash flows. The factors that affect the value of our real estate investments include, among other things: • global, national, regional and local economic conditions and geopolitical events; • competition from other available space, including co-working space and sub-leases; • local conditions such as an oversupply of space or a reduction in demand for real estate in the area; • how well we manage our properties; • the development and/or redevelopment of our properties; • changes in market rental rates; • trends in office real estate, including many tenants' preferences for space in modern amenitized buildings which may require the landlord to incur significant capital expenditures; • increased competition from online shopping and its impact on retail tenants and their demand for retail space; • the timing and costs associated with property improvements and rentals; • whether we are able to pass all or portions of any increases in operating costs through to tenants; • changes in real estate taxes and other expenses; • fluctuations in interest rates; • the ability of state and local governments to operate within their budgets; • whether tenants and users such as customers and shoppers consider a property attractive; • changes in consumer preferences adversely affecting retailers and retail store values; • changes in tenant space utilization; • the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; • consequences of any armed conflict involving, or terrorist attacks against, the United States or individual acts of violence in public spaces; • availability of financing on acceptable terms or at all; • inflation or deflation; • our ability to obtain adequate insurance; • government regulation, including changes in fiscal policies, taxation, and zoning laws; • potential liability and compliance costs associated with environmental or other laws or regulations; • natural disasters; • general competitive factors; • climate change; and • the impact of pandemics or outbreaks of other infectious diseases. The rents or sales proceeds we receive and the occupancy levels at our properties may decline as a result of adverse changes in any of these factors. If rental revenues, sales proceeds and/or occupancy levels decline, we generally would expect to have less cash available for operating costs, to pay indebtedness and for distribution to equity holders. In addition, some of our major expenses, including mortgage payments, real estate taxes and maintenance costs generally do not decline when the related rents decline and maintenance costs can increase substantially in an inflationary environment. These factors may cause the value of our real estate assets to decline, which may result in non-cash impairment charges and the impact could be material. Real estate is a competitive business and that competition may adversely impact us. We compete with a large number of real estate investors, property owners and developers, some of whom may be willing to accept lower returns on their investments. Principal factors of competition are rents charged, tenant concessions offered, attractiveness of location, the quality of the property and the breadth and the quality of services provided. Substantially all of our properties face competition from similar properties in the same market, which may adversely impact the rents we can charge at those properties and our results of operations. Our commercial office properties are located primarily in highly developed areas of the New York metropolitan area. Manhattan is the largest office market in the United States. The number of competitive office properties in the New York metropolitan area, which may be newer, more amenitized or better located than our properties, could have a material adverse effect on our ability to lease office space at our properties and on the effective rents we are able to charge. 13 , Steven Roth and Interstate Properties may exercise substantial influence over us. They and some of Vornado's other trustees and officers have interests or positions in other entities that may compete with us. As of December 31, 2023, Interstate Properties, a New Jersey general partnership, and its partners beneficially owned an aggregate of approximately 7.0% of the common shares of beneficial interest of Vornado and 26.0% of the common stock of Alexander's, which is described below. Steven Roth, David Mandelbaum and Russell B. Wight, Jr. are the three partners of Interstate Properties. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's. Because of these overlapping interests, Mr. Roth and Interstate Properties and its partners may have substantial influence over Vornado, and therefore over the Operating Partnership. In addition, certain decisions concerning our operations or financial structure may present conflicts of interest among Messrs. Roth, Mandelbaum and Wight and Interstate Properties and our other equity holders. In addition, Mr. Roth, Interstate Properties and its partners, and Alexander's currently and may in the future engage in a wide variety of activities in the real estate business which may result in conflicts of interest with respect to matters affecting us, such as which of these entities or persons, if any, may take advantage of potential business opportunities, the business focus of these entities, the types of properties and geographic locations in which these entities make investments, potential competition between business activities conducted, or sought to be conducted, competition for properties and tenants, possible corporate transactions such as acquisitions and other strategic decisions affecting the future of these entities. We manage and lease the real estate assets of Interstate Properties pursuant to a management agreement for which we receive an annual fee equal to 4% of annual base rent and percentage rent. See Note 22 – Related Party Transactions to our consolidated financial statements in this Annual Report on Form 10-K for additional information. There may be conflicts of interest between Alexander's and us. As of December 31, 2023, we owned 32.4% of the outstanding common stock of Alexander's. Alexander's is a REIT that has five properties, which are located in the greater New York metropolitan area. In addition to the 2.3% that they indirectly own through Vornado, Interstate Properties, which is described above, and its partners owned 26.0% of the outstanding common stock of Alexander's as of December 31, 2023. Mr. Roth is the Chairman of the Board of Trustees and Chief Executive Officer of Vornado, the managing general partner of Interstate Properties, and the Chairman of the Board of Directors and Chief Executive Officer of Alexander's. Messrs. Mandelbaum and Wight are Trustees of Vornado and Directors of Alexander's and general partners of Interstate Properties. Ms. Mandakini Puri is a Trustee of Vornado and Director of Alexander's. We manage, develop and lease Alexander's properties under management, development and leasing agreements under which we receive annual fees from Alexander's. These agreements are described in Note 5 – Investments in Partially Owned Entities to our consolidated financial statements in this Annual Report on Form 10-K. RISKS RELATED TO OUR COMMON SHARES AND OPERATING PARTNERSHIP CLASS A UNITS The trading price of Vornado's common shares has been volatile and may continue to fluctuate. The trading price of Vornado's common shares has been volatile and may continue to fluctuate widely as a result of several factors, many of which are outside our control. In addition, the stock market is subject to fluctuations in the share prices and trading volumes that affect the market prices of the shares of many companies. These broad market fluctuations have in the past and may in the future adversely affect the market price of Vornado's common shares and the redemption price of the Operating Partnership's Class A units. These factors include: •our financial condition and performance; •the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; •actual or anticipated quarterly fluctuations in our operating results and financial condition; •our dividend policy; •the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; •uncertainty and volatility in the equity and credit markets; •interest rates increases; •changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; •failure to meet analysts' revenue or earnings estimates; •speculation in the press or investment community; •strategic actions by us or our competitors, such as acquisitions or restructurings; •the extent of institutional investor interest in us; •the extent of short-selling of Vornado common shares and the shares of our competitors; •fluctuations in the stock price and operating results of our competitors; 21
q_com067
Compare the occupancy rates of Simon Property Group's U.S. Malls and Premium Outlets segment with Vornado Realty Trust's New York Office segment for the year 2023.
For the year 2023, Simon Property Group's U.S. Malls and Premium Outlets segment had an ending occupancy rate of 95.8%. Vornado Realty Trust's New York Office segment had an occupancy rate of 90.7%. Simon Property Group's U.S. Malls and Premium Outlets segment had a higher occupancy rate compared to Vornado Realty Trust's New York Office segment, indicating stronger tenant retention and demand.
Comparison
61, 62;30;44
0001558370-24-001532;0000899689-24-000005;0000899689-24-000005
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations;ITEM 2. PROPERTIES;ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 61: | | | | |---:|:---|:-----------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | a non-cash gain in 2022 on the disposal, exchange, or revaluation of equity interests, net of $121.2 million, or $0.32 per diluted share/unit, | | | | | |---:|:---|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | increased interest expense in 2023 of $93.4 million, or $0.25 per diluted share/unit, primarily due to new USD and EUR bond issuances as well as increases to rates on variable rate mortgages, | | | | | |---:|:---|:------------------------------------------------------------------------------------| | 0 | ● | increased other expenses in 2023 of $35.6 million, or $0.10 per diluted share/unit, | | | | | |---:|:---|:-------------------------------------------------------------------------------------------------------| | 0 | ● | increased depreciation and amortization in 2023 of $34.7 million, or $0.09 per diluted share/unit, and | | | | | |---:|:---|:-------------------------------------------------------------------------------------------------| | 0 | ● | increased property operating expenses in 2023 of $25.2 million, or $0.07 per diluted share/unit. | Portfolio NOI increased 4.9% in 2023 as compared to 2022. Average base minimum rent for U.S. Malls and Premium Outlets increased 3.1% to $56.82 psf as of December 31, 2023, from $55.13 psf as of December 31, 2022. Ending occupancy for our U.S. Malls and Premium Outlets increased 0.9% to 95.8% as of December 31, 2023, from 94.9% as of December 31, 2022, primarily due to strong leasing demand. Our effective overall borrowing rate at December 31, 2023 on our consolidated indebtedness increased 27 basis points to 3.49% as compared to 3.22% at December 31, 2022. This increase was primarily due to an increase in the effective overall borrowing rate on variable rate debt of 198 basis points (5.91% at December 31, 2023 as compared to 3.93% at December 31, 2022) due to increasing benchmark rates, partially offset by a decrease in the amount of our variable rate debt and an increase in fixed rate debt. The weighted average years to maturity of our consolidated indebtedness was 8.1 years and 7.5 years at December 31, 2023 and 2022, respectively. Our financing activity for the year ended December 31, 2023 included: | | | | |---:|:---|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on November 14, 2023, the issuance of €750.0 million senior unsecured bonds ($808.0 million U.S. dollar equivalent) with a maturity date of November 14, 2026 and a fixed interest rate of 3.50%. The bonds are exchangeable into shares of Klépierre at the option of the holder of the bond at an initial common price of €27.2092. We may elect to settle the exchange with cash instead of shares. Proceeds were used to repay €750.0 million ($815.4 million U.S. dollar equivalent) outstanding under the Supplemental Facility on November 17, 2023. | | | | | |---:|:---|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on November 9, 2023, the issuance of the following senior unsecured notes: $500 million with a fixed interest rate of 6.25% and $500 million with a fixed interest rate of 6.65%, with maturity dates of January 15, 2034 and January 15, 2054, respectively. | | | | | |---:|:---|:--------------------------------------------------------------------------------------------------| | 0 | ● | borrowing $180.0 million under the Credit Facility and subsequently unencumbering two properties, | | | | | |---:|:---|:-----------------------------------------------------------------------------------------------------------------------| | 0 | ● | completing, on June 1, 2023 the redemption at par of the Operating Partnership's $600 million 2.75% notes at maturity, | | | | | |---:|:---|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on March 8, 2023, the issuance of the following senior unsecured notes: $650 million with a fixed interest rate of 5.5% and $650 million with a fixed interest rate of 5.85%, with maturity dates of March 8, 2033 and March 8, 2053, respectively. A portion of the net proceeds were used to fund the optional redemption at par of the Operating Partnerships $500 million floating interest rate notes due January 2024 on March 13, 2023, and | | | | | |---:|:---|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | Amending, restating, extending, and increasing our existing $4.0 billion unsecured revolving credit facility on March 14, 2023 with a new $5.0 billion unsecured revolving credit facility. | United States Portfolio Data The portfolio data discussed in this overview includes the following key operating statistics: ending occupancy, and average base minimum rent per square foot. We include acquired properties in this data beginning in the year of acquisition and remove disposed properties in the year of disposition. For comparative information purposes, we separate the information related to The Mills and TRG from our other U.S. operations. We also do not include any information for properties located outside the United States. 61 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 62: The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: | | | | |---:|:---|:---------------------------------------------------------------------------| | 0 | ● | properties that are consolidated in our consolidated financial statements, | | | | | |---:|:---|:---------------------------------------------------------------------------------------| | 0 | ● | properties we account for under the equity method of accounting as joint ventures, and | | | | | |---:|:---|:-----------------------------------------------------------------------| | 0 | ● | the foregoing two categories of properties on a total portfolio basis. | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-----|:------|:-----------|:--------------|:-----|:---|:-----------|:---|:--------------|:---|:---|:------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | | 2 | ​ | | 2023 | | Change (1) | | 2022 | | Change (1) | | 2021 | ​ | | | | | 3 | U.S. Malls and Premium Outlets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Ending Occupancy | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Consolidated | ​ | ​ | 95.7% | ​ | 80 bps | ​ | ​ | 94.9% | ​ | 140 bps | ​ | ​ | 93.5% | ​ | | 6 | Unconsolidated | ​ | ​ | 96.1% | ​ | 120 bps | ​ | ​ | 94.9% | ​ | 180 bps | ​ | ​ | 93.1% | ​ | | 7 | Total Portfolio | ​ | ​ | 95.8% | ​ | 90 bps | ​ | ​ | 94.9% | ​ | 150 bps | ​ | ​ | 93.4% | ​ | | 8 | Average Base Minimum Rent per Square Foot | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 9 | Consolidated | ​ | $ | 55.47 | ​ | 2.8% | ​ | $ | 53.95 | ​ | 2.6% | ​ | $ | 52.59 | ​ | | 10 | Unconsolidated | ​ | $ | 60.59 | ​ | 3.8% | ​ | $ | 58.36 | ​ | 1.4% | ​ | $ | 57.55 | ​ | | 11 | Total Portfolio | ​ | $ | 56.82 | ​ | 3.1% | ​ | $ | 55.13 | ​ | 2.3% | ​ | $ | 53.91 | ​ | | 12 | U.S. TRG: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 13 | Ending Occupancy | ​ | | 95.7% | ​ | 120 bps | ​ | | 94.5% | ​ | 330 bps | ​ | | 91.2% | ​ | | 14 | Average Base Minimum Rent per Square Foot | ​ | $ | 65.01 | ​ | 5.3% | ​ | $ | 61.76 | ​ | 5.2% | ​ | $ | 58.69 | ​ | | 15 | The Mills: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Ending Occupancy | ​ | | 97.8% | ​ | -40 bps | ​ | | 98.2% | ​ | 60 bps | ​ | | 97.6% | ​ | | 17 | Average Base Minimum Rent per Square Foot | ​ | $ | 36.38 | ​ | 4.3% | ​ | $ | 34.89 | ​ | 3.2% | ​ | $ | 33.80 | ​ | | | | | |---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | (1) | Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period. | Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-------------|:------|:--------------|:--------|:-------------|:---|:--------------|:---|:-------------|:---|:---|:------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | %/basis point | | December 31, | | %/basis point | | December 31, | | | | | 2 | ​ | ​ | 2023 | ​ | Change | ​ | 2022 | ​ | Change | ​ | 2021 | | | | | 3 | Ending Occupancy | ​ | ​ | 99.7% | ​ | -10 bps | ​ | ​ | 99.8% | ​ | 0 bps | ​ | ​ | 99.8% | | 4 | Average Base Minimum Rent per Square Foot | ​ | ¥ | 5,494 | ​ | -4.93% | ​ | ¥ | 5,779 | ​ | 4.90% | ​ | ¥ | 5,509 | ​ 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 30: NEW YORK As of December 31, 2023, our New York segment consisted of 26.7 million square feet in 60 properties. The 26.7 million square feet is comprised of 20.4 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 50 of the properties, 1,662 units in five residential properties, and our 32.4% interest in Alexander's, which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens. The New York segment also includes nine garages totaling 1.6 million square feet (4,685 spaces). As of December 31, 2023, the occupancy rate for our New York segment was 89.4%. Occupancy and weighted average annual rent per square foot: Office: | | | | | | | | | | | | | |---:|:-------------------|:------------------|:----------------------|:-----------|:------------------------------|:--------------|:-----------------------------------------------------|:-----|:---|:------|:------| | 1 | | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Square Feet | In ServiceSquare Feet | | In ServiceSquare FeetAt Share | OccupancyRate | WeightedAverage Annual Escalated RentPer Square Foot | | | | | | 3 | 2023 | 20,383,000 | | 18,699,000 | | 16,001,000 | | 90.7 | % | $ | 86.30 | | 4 | 2022 | 19,902,000 | | 18,724,000 | | 16,028,000 | | 91.9 | % | 83.98 | | | 5 | 2021 | 20,630,000 | | 19,442,000 | | 16,757,000 | | 92.2 | % | 80.01 | | | 6 | 2020 | 20,586,000 | | 18,361,000 | | 15,413,000 | | 93.4 | % | 79.05 | | | 7 | 2019 | 20,666,000 | | 19,070,000 | | 16,195,000 | | 96.9 | % | 76.26 | | Retail: | | | | | | | | | | | | | |---:|:-------------------|:------------------|:----------------------|:----------|:------------------------------|:--------------|:-----------------------------------------------------|:-----|:---|:-------|:-------| | 1 | | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Square Feet | In ServiceSquare Feet | | In ServiceSquare FeetAt Share | OccupancyRate | WeightedAverage Annual Escalated RentPer Square Foot | | | | | | 3 | 2023 | 2,394,000 | | 2,123,000 | | 1,684,000 | | 74.9 | % | $ | 224.88 | | 4 | 2022 | 2,556,000 | | 2,289,000 | | 1,851,000 | | 74.4 | % | 215.72 | | | 5 | 2021 | 2,693,000 | | 2,267,000 | | 1,825,000 | | 80.7 | % | 214.22 | | | 6 | 2020 | 2,690,000 | | 2,275,000 | | 1,805,000 | | 78.8 | % | 226.38 | | | 7 | 2019 | 2,712,000 | | 2,300,000 | | 1,842,000 | | 94.5 | % | 209.86 | | Occupancy and average monthly rent per unit: Residential: | | | | | | | | | | | | |---:|:-------------------|:----------------------|:------|:-----------------------------|:--------------|:-----------------------------|:-----|:---|:------|:------| | 1 | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Number of Units | | TotalNumber of Units | OccupancyRate | Average MonthlyRent Per Unit | | | | | | 3 | 2023 | | 1,974 | | 939 | | 96.8 | % | $ | 4,115 | | 4 | 2022 | | 1,976 | | 941 | | 96.7 | % | 3,882 | | | 5 | 2021 | | 1,986 | | 951 | | 97.0 | % | 3,776 | | | 6 | 2020 | | 1,995 | | 960 | | 84.9 | % | 3,714 | | | 7 | 2019 | | 1,996 | | 960 | | 97.5 | % | 3,902 | | 30 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 44: NOI At Share by Segment for the Years Ended December 31, 2023 and 2022 - continued The elements of our New York and Other NOI at share for the years ended December 31, 2023 and 2022 are summarized below. | | | | | | | | | |---:|:-------------------------|:--------------------------------|:----------|:-----|:--------|:---|:----------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | New York: | | | | | | | | 4 | Office | $ | 727,000 | | | $ | 718,686 | | 5 | Retail | 188,561 | | | 205,753 | | | | 6 | Residential | 21,910 | | | 19,600 | | | | 7 | Alexander's | 40,098 | | | 37,469 | | | | 8 | Total New York | 977,569 | | | 981,508 | | | | 10 | Other: | | | | | | | | 11 | THE MART(1) | 61,519 | | | 96,906 | | | | 12 | 555 California Street(2) | 82,965 | | | 65,692 | | | | 13 | Other investments | 21,160 | | | 17,942 | | | | 14 | Total Other | 165,644 | | | 180,540 | | | | 16 | NOI at share | $ | 1,143,213 | | | $ | 1,162,048 | ________________________________________ See notes below. The elements of our New York and Other NOI at share - cash basis for the years ended December 31, 2023 and 2022 are summarized below. | | | | | | | | | |---:|:--------------------------|:--------------------------------|:----------|:-----|:--------|:---|:----------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | New York: | | | | | | | | 4 | Office | $ | 726,914 | | | $ | 715,407 | | 5 | Retail | 180,932 | | | 188,846 | | | | 6 | Residential | 20,588 | | | 18,214 | | | | 7 | Alexander's | 41,435 | | | 40,532 | | | | 8 | Total New York | 969,869 | | | 962,999 | | | | 10 | Other: | | | | | | | | 11 | THE MART(1) | 62,579 | | | 101,912 | | | | 12 | 555 California Street(2) | 85,819 | | | 67,813 | | | | 13 | Other investments | 21,569 | | | 18,344 | | | | 14 | Total Other | 169,967 | | | 188,069 | | | | 16 | NOI at share - cash basis | $ | 1,139,836 | | | $ | 1,151,068 | ________________________________________ (1)2022 includes prior period accrual adjustment related to changes in the tax-assessed value of THE MART. (2)2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses. 44
| | | | |---:|:---|:-----------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | a non-cash gain in 2022 on the disposal, exchange, or revaluation of equity interests, net of $121.2 million, or $0.32 per diluted share/unit, | | | | | |---:|:---|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | increased interest expense in 2023 of $93.4 million, or $0.25 per diluted share/unit, primarily due to new USD and EUR bond issuances as well as increases to rates on variable rate mortgages, | | | | | |---:|:---|:------------------------------------------------------------------------------------| | 0 | ● | increased other expenses in 2023 of $35.6 million, or $0.10 per diluted share/unit, | | | | | |---:|:---|:-------------------------------------------------------------------------------------------------------| | 0 | ● | increased depreciation and amortization in 2023 of $34.7 million, or $0.09 per diluted share/unit, and | | | | | |---:|:---|:-------------------------------------------------------------------------------------------------| | 0 | ● | increased property operating expenses in 2023 of $25.2 million, or $0.07 per diluted share/unit. | Portfolio NOI increased 4.9% in 2023 as compared to 2022. Average base minimum rent for U.S. Malls and Premium Outlets increased 3.1% to $56.82 psf as of December 31, 2023, from $55.13 psf as of December 31, 2022. Ending occupancy for our U.S. Malls and Premium Outlets increased 0.9% to 95.8% as of December 31, 2023, from 94.9% as of December 31, 2022, primarily due to strong leasing demand. Our effective overall borrowing rate at December 31, 2023 on our consolidated indebtedness increased 27 basis points to 3.49% as compared to 3.22% at December 31, 2022. This increase was primarily due to an increase in the effective overall borrowing rate on variable rate debt of 198 basis points (5.91% at December 31, 2023 as compared to 3.93% at December 31, 2022) due to increasing benchmark rates, partially offset by a decrease in the amount of our variable rate debt and an increase in fixed rate debt. The weighted average years to maturity of our consolidated indebtedness was 8.1 years and 7.5 years at December 31, 2023 and 2022, respectively. Our financing activity for the year ended December 31, 2023 included: | | | | |---:|:---|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on November 14, 2023, the issuance of €750.0 million senior unsecured bonds ($808.0 million U.S. dollar equivalent) with a maturity date of November 14, 2026 and a fixed interest rate of 3.50%. The bonds are exchangeable into shares of Klépierre at the option of the holder of the bond at an initial common price of €27.2092. We may elect to settle the exchange with cash instead of shares. Proceeds were used to repay €750.0 million ($815.4 million U.S. dollar equivalent) outstanding under the Supplemental Facility on November 17, 2023. | | | | | |---:|:---|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on November 9, 2023, the issuance of the following senior unsecured notes: $500 million with a fixed interest rate of 6.25% and $500 million with a fixed interest rate of 6.65%, with maturity dates of January 15, 2034 and January 15, 2054, respectively. | | | | | |---:|:---|:--------------------------------------------------------------------------------------------------| | 0 | ● | borrowing $180.0 million under the Credit Facility and subsequently unencumbering two properties, | | | | | |---:|:---|:-----------------------------------------------------------------------------------------------------------------------| | 0 | ● | completing, on June 1, 2023 the redemption at par of the Operating Partnership's $600 million 2.75% notes at maturity, | | | | | |---:|:---|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | the Operating Partnership completing on March 8, 2023, the issuance of the following senior unsecured notes: $650 million with a fixed interest rate of 5.5% and $650 million with a fixed interest rate of 5.85%, with maturity dates of March 8, 2033 and March 8, 2053, respectively. A portion of the net proceeds were used to fund the optional redemption at par of the Operating Partnerships $500 million floating interest rate notes due January 2024 on March 13, 2023, and | | | | | |---:|:---|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | ● | Amending, restating, extending, and increasing our existing $4.0 billion unsecured revolving credit facility on March 14, 2023 with a new $5.0 billion unsecured revolving credit facility. | United States Portfolio Data The portfolio data discussed in this overview includes the following key operating statistics: ending occupancy, and average base minimum rent per square foot. We include acquired properties in this data beginning in the year of acquisition and remove disposed properties in the year of disposition. For comparative information purposes, we separate the information related to The Mills and TRG from our other U.S. operations. We also do not include any information for properties located outside the United States. 61 , The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: | | | | |---:|:---|:---------------------------------------------------------------------------| | 0 | ● | properties that are consolidated in our consolidated financial statements, | | | | | |---:|:---|:---------------------------------------------------------------------------------------| | 0 | ● | properties we account for under the equity method of accounting as joint ventures, and | | | | | |---:|:---|:-----------------------------------------------------------------------| | 0 | ● | the foregoing two categories of properties on a total portfolio basis. | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-----|:------|:-----------|:--------------|:-----|:---|:-----------|:---|:--------------|:---|:---|:------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | | 2 | ​ | | 2023 | | Change (1) | | 2022 | | Change (1) | | 2021 | ​ | | | | | 3 | U.S. Malls and Premium Outlets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Ending Occupancy | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Consolidated | ​ | ​ | 95.7% | ​ | 80 bps | ​ | ​ | 94.9% | ​ | 140 bps | ​ | ​ | 93.5% | ​ | | 6 | Unconsolidated | ​ | ​ | 96.1% | ​ | 120 bps | ​ | ​ | 94.9% | ​ | 180 bps | ​ | ​ | 93.1% | ​ | | 7 | Total Portfolio | ​ | ​ | 95.8% | ​ | 90 bps | ​ | ​ | 94.9% | ​ | 150 bps | ​ | ​ | 93.4% | ​ | | 8 | Average Base Minimum Rent per Square Foot | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 9 | Consolidated | ​ | $ | 55.47 | ​ | 2.8% | ​ | $ | 53.95 | ​ | 2.6% | ​ | $ | 52.59 | ​ | | 10 | Unconsolidated | ​ | $ | 60.59 | ​ | 3.8% | ​ | $ | 58.36 | ​ | 1.4% | ​ | $ | 57.55 | ​ | | 11 | Total Portfolio | ​ | $ | 56.82 | ​ | 3.1% | ​ | $ | 55.13 | ​ | 2.3% | ​ | $ | 53.91 | ​ | | 12 | U.S. TRG: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 13 | Ending Occupancy | ​ | | 95.7% | ​ | 120 bps | ​ | | 94.5% | ​ | 330 bps | ​ | | 91.2% | ​ | | 14 | Average Base Minimum Rent per Square Foot | ​ | $ | 65.01 | ​ | 5.3% | ​ | $ | 61.76 | ​ | 5.2% | ​ | $ | 58.69 | ​ | | 15 | The Mills: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Ending Occupancy | ​ | | 97.8% | ​ | -40 bps | ​ | | 98.2% | ​ | 60 bps | ​ | | 97.6% | ​ | | 17 | Average Base Minimum Rent per Square Foot | ​ | $ | 36.38 | ​ | 4.3% | ​ | $ | 34.89 | ​ | 3.2% | ​ | $ | 33.80 | ​ | | | | | |---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | (1) | Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period. | Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-------------|:------|:--------------|:--------|:-------------|:---|:--------------|:---|:-------------|:---|:---|:------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | %/basis point | | December 31, | | %/basis point | | December 31, | | | | | 2 | ​ | ​ | 2023 | ​ | Change | ​ | 2022 | ​ | Change | ​ | 2021 | | | | | 3 | Ending Occupancy | ​ | ​ | 99.7% | ​ | -10 bps | ​ | ​ | 99.8% | ​ | 0 bps | ​ | ​ | 99.8% | | 4 | Average Base Minimum Rent per Square Foot | ​ | ¥ | 5,494 | ​ | -4.93% | ​ | ¥ | 5,779 | ​ | 4.90% | ​ | ¥ | 5,509 | ​ 62 , NEW YORK As of December 31, 2023, our New York segment consisted of 26.7 million square feet in 60 properties. The 26.7 million square feet is comprised of 20.4 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 50 of the properties, 1,662 units in five residential properties, and our 32.4% interest in Alexander's, which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens. The New York segment also includes nine garages totaling 1.6 million square feet (4,685 spaces). As of December 31, 2023, the occupancy rate for our New York segment was 89.4%. Occupancy and weighted average annual rent per square foot: Office: | | | | | | | | | | | | | |---:|:-------------------|:------------------|:----------------------|:-----------|:------------------------------|:--------------|:-----------------------------------------------------|:-----|:---|:------|:------| | 1 | | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Square Feet | In ServiceSquare Feet | | In ServiceSquare FeetAt Share | OccupancyRate | WeightedAverage Annual Escalated RentPer Square Foot | | | | | | 3 | 2023 | 20,383,000 | | 18,699,000 | | 16,001,000 | | 90.7 | % | $ | 86.30 | | 4 | 2022 | 19,902,000 | | 18,724,000 | | 16,028,000 | | 91.9 | % | 83.98 | | | 5 | 2021 | 20,630,000 | | 19,442,000 | | 16,757,000 | | 92.2 | % | 80.01 | | | 6 | 2020 | 20,586,000 | | 18,361,000 | | 15,413,000 | | 93.4 | % | 79.05 | | | 7 | 2019 | 20,666,000 | | 19,070,000 | | 16,195,000 | | 96.9 | % | 76.26 | | Retail: | | | | | | | | | | | | | |---:|:-------------------|:------------------|:----------------------|:----------|:------------------------------|:--------------|:-----------------------------------------------------|:-----|:---|:-------|:-------| | 1 | | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Square Feet | In ServiceSquare Feet | | In ServiceSquare FeetAt Share | OccupancyRate | WeightedAverage Annual Escalated RentPer Square Foot | | | | | | 3 | 2023 | 2,394,000 | | 2,123,000 | | 1,684,000 | | 74.9 | % | $ | 224.88 | | 4 | 2022 | 2,556,000 | | 2,289,000 | | 1,851,000 | | 74.4 | % | 215.72 | | | 5 | 2021 | 2,693,000 | | 2,267,000 | | 1,825,000 | | 80.7 | % | 214.22 | | | 6 | 2020 | 2,690,000 | | 2,275,000 | | 1,805,000 | | 78.8 | % | 226.38 | | | 7 | 2019 | 2,712,000 | | 2,300,000 | | 1,842,000 | | 94.5 | % | 209.86 | | Occupancy and average monthly rent per unit: Residential: | | | | | | | | | | | | |---:|:-------------------|:----------------------|:------|:-----------------------------|:--------------|:-----------------------------|:-----|:---|:------|:------| | 1 | | | | Vornado's Ownership Interest | | | | | | | | 2 | As of December 31, | Total Number of Units | | TotalNumber of Units | OccupancyRate | Average MonthlyRent Per Unit | | | | | | 3 | 2023 | | 1,974 | | 939 | | 96.8 | % | $ | 4,115 | | 4 | 2022 | | 1,976 | | 941 | | 96.7 | % | 3,882 | | | 5 | 2021 | | 1,986 | | 951 | | 97.0 | % | 3,776 | | | 6 | 2020 | | 1,995 | | 960 | | 84.9 | % | 3,714 | | | 7 | 2019 | | 1,996 | | 960 | | 97.5 | % | 3,902 | | 30 , NOI At Share by Segment for the Years Ended December 31, 2023 and 2022 - continued The elements of our New York and Other NOI at share for the years ended December 31, 2023 and 2022 are summarized below. | | | | | | | | | |---:|:-------------------------|:--------------------------------|:----------|:-----|:--------|:---|:----------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | New York: | | | | | | | | 4 | Office | $ | 727,000 | | | $ | 718,686 | | 5 | Retail | 188,561 | | | 205,753 | | | | 6 | Residential | 21,910 | | | 19,600 | | | | 7 | Alexander's | 40,098 | | | 37,469 | | | | 8 | Total New York | 977,569 | | | 981,508 | | | | 10 | Other: | | | | | | | | 11 | THE MART(1) | 61,519 | | | 96,906 | | | | 12 | 555 California Street(2) | 82,965 | | | 65,692 | | | | 13 | Other investments | 21,160 | | | 17,942 | | | | 14 | Total Other | 165,644 | | | 180,540 | | | | 16 | NOI at share | $ | 1,143,213 | | | $ | 1,162,048 | ________________________________________ See notes below. The elements of our New York and Other NOI at share - cash basis for the years ended December 31, 2023 and 2022 are summarized below. | | | | | | | | | |---:|:--------------------------|:--------------------------------|:----------|:-----|:--------|:---|:----------| | 1 | (Amounts in thousands) | For the Year Ended December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | New York: | | | | | | | | 4 | Office | $ | 726,914 | | | $ | 715,407 | | 5 | Retail | 180,932 | | | 188,846 | | | | 6 | Residential | 20,588 | | | 18,214 | | | | 7 | Alexander's | 41,435 | | | 40,532 | | | | 8 | Total New York | 969,869 | | | 962,999 | | | | 10 | Other: | | | | | | | | 11 | THE MART(1) | 62,579 | | | 101,912 | | | | 12 | 555 California Street(2) | 85,819 | | | 67,813 | | | | 13 | Other investments | 21,569 | | | 18,344 | | | | 14 | Total Other | 169,967 | | | 188,069 | | | | 16 | NOI at share - cash basis | $ | 1,139,836 | | | $ | 1,151,068 | ________________________________________ (1)2022 includes prior period accrual adjustment related to changes in the tax-assessed value of THE MART. (2)2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses. 44
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 61: <table><tr><td></td><td>●</td><td>a non-cash gain in 2022 on the disposal, exchange, or revaluation of equity interests, net of $121.2 million, or $0.32 per diluted share/unit,</td></tr></table><table><tr><td></td><td>●</td><td>increased interest expense in 2023 of $93.4 million, or $0.25 per diluted share/unit, primarily due to new USD and EUR bond issuances as well as increases to rates on variable rate mortgages,</td></tr></table><table><tr><td></td><td>●</td><td>increased other expenses in 2023 of $35.6 million, or $0.10 per diluted share/unit,</td></tr></table><table><tr><td></td><td>●</td><td>increased depreciation and amortization in 2023 of $34.7 million, or $0.09 per diluted share/unit, and</td></tr></table><table><tr><td></td><td>●</td><td>increased property operating expenses in 2023 of $25.2 million, or $0.07 per diluted share/unit.</td></tr></table> Portfolio NOI increased 4.9% in 2023 as compared to 2022. Average base minimum rent for U.S. Malls and Premium Outlets increased 3.1% to $56.82 psf as of December 31, 2023, from $55.13 psf as of December 31, 2022. Ending occupancy for our U.S. Malls and Premium Outlets increased 0.9% to 95.8% as of December 31, 2023, from 94.9% as of December 31, 2022, primarily due to strong leasing demand. Our effective overall borrowing rate at December 31, 2023 on our consolidated indebtedness increased 27 basis points to 3.49% as compared to 3.22% at December 31, 2022. This increase was primarily due to an increase in the effective overall borrowing rate on variable rate debt of 198 basis points (5.91% at December 31, 2023 as compared to 3.93% at December 31, 2022) due to increasing benchmark rates, partially offset by a decrease in the amount of our variable rate debt and an increase in fixed rate debt. The weighted average years to maturity of our consolidated indebtedness was 8.1 years and 7.5 years at December 31, 2023 and 2022, respectively. Our financing activity for the year ended December 31, 2023 included: <table><tr><td></td><td>●</td><td>the Operating Partnership completing on November 14, 2023, the issuance of €750.0 million senior unsecured bonds ($808.0 million U.S. dollar equivalent) with a maturity date of November 14, 2026 and a fixed interest rate of 3.50%. The bonds are exchangeable into shares of Klépierre at the option of the holder of the bond at an initial common price of €27.2092. We may elect to settle the exchange with cash instead of shares. Proceeds were used to repay €750.0 million ($815.4 million U.S. dollar equivalent) outstanding under the Supplemental Facility on November 17, 2023.</td></tr></table><table><tr><td></td><td>●</td><td>the Operating Partnership completing on November 9, 2023, the issuance of the following senior unsecured notes: $500 million with a fixed interest rate of 6.25% and $500 million with a fixed interest rate of 6.65%, with maturity dates of January 15, 2034 and January 15, 2054, respectively. </td></tr></table><table><tr><td></td><td>●</td><td>borrowing $180.0 million under the Credit Facility and subsequently unencumbering two properties,</td></tr></table> <table><tr><td></td><td>●</td><td>completing, on June 1, 2023 the redemption at par of the Operating Partnership's $600 million 2.75% notes at maturity,</td></tr></table> <table><tr><td></td><td>●</td><td>the Operating Partnership completing on March 8, 2023, the issuance of the following senior unsecured notes: $650 million with a fixed interest rate of 5.5% and $650 million with a fixed interest rate of 5.85%, with maturity dates of March 8, 2033 and March 8, 2053, respectively. A portion of the net proceeds were used to fund the optional redemption at par of the Operating Partnerships $500 million floating interest rate notes due January 2024 on March 13, 2023, and</td></tr></table><table><tr><td></td><td>●</td><td>Amending, restating, extending, and increasing our existing $4.0 billion unsecured revolving credit facility on March 14, 2023 with a new $5.0 billion unsecured revolving credit facility.</td></tr></table> United States Portfolio Data The portfolio data discussed in this overview includes the following key operating statistics: ending occupancy, and average base minimum rent per square foot. We include acquired properties in this data beginning in the year of acquisition and remove disposed properties in the year of disposition. For comparative information purposes, we separate the information related to The Mills and TRG from our other U.S. operations. We also do not include any information for properties located outside the United States. 61 , SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 62: The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: <table><tr><td></td><td>●</td><td>properties that are consolidated in our consolidated financial statements,</td></tr></table><table><tr><td></td><td>●</td><td>properties we account for under the equity method of accounting as joint ventures, and</td></tr></table><table><tr><td></td><td>●</td><td>the foregoing two categories of properties on a total portfolio basis.</td></tr></table> <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2022</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2021</td><td>​</td></tr><tr><td>U.S. Malls and Premium Outlets:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>​</td><td>95.7%</td><td>​</td><td>80 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>140 bps</td><td>​</td><td>​</td><td>93.5%</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>​</td><td>96.1%</td><td>​</td><td>120 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>180 bps</td><td>​</td><td>​</td><td>93.1%</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>​</td><td>95.8%</td><td>​</td><td>90 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>150 bps</td><td>​</td><td>​</td><td>93.4%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>$</td><td> 55.47</td><td>​</td><td>2.8%</td><td>​</td><td>$</td><td> 53.95</td><td>​</td><td>2.6%</td><td>​</td><td>$</td><td> 52.59</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>$</td><td> 60.59</td><td>​</td><td>3.8%</td><td>​</td><td>$</td><td> 58.36</td><td>​</td><td>1.4%</td><td>​</td><td>$</td><td> 57.55</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>$</td><td> 56.82</td><td>​</td><td>3.1%</td><td>​</td><td>$</td><td> 55.13</td><td>​</td><td>2.3%</td><td>​</td><td>$</td><td> 53.91</td><td>​</td></tr><tr><td>U.S. TRG:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>95.7%</td><td>​</td><td>120 bps</td><td>​</td><td> </td><td>94.5%</td><td>​</td><td>330 bps</td><td>​</td><td> </td><td>91.2%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 65.01</td><td>​</td><td>5.3%</td><td>​</td><td>$</td><td> 61.76</td><td>​</td><td>5.2%</td><td>​</td><td>$</td><td> 58.69</td><td>​</td></tr><tr><td>The Mills:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>97.8%</td><td>​</td><td>-40 bps</td><td>​</td><td> </td><td>98.2%</td><td>​</td><td>60 bps</td><td>​</td><td> </td><td>97.6%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 36.38</td><td>​</td><td>4.3%</td><td>​</td><td>$</td><td> 34.89</td><td>​</td><td>3.2%</td><td>​</td><td>$</td><td> 33.80</td><td>​</td></tr></table> <table><tr><td>(1)</td><td>Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.</td></tr></table> Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td>​</td><td colspan="2">2023</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2022</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2021</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>99.7%</td><td>​</td><td>-10 bps</td><td>​</td><td>​</td><td>99.8%</td><td>​</td><td>0 bps</td><td>​</td><td>​</td><td>99.8%</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>¥</td><td> 5,494</td><td>​</td><td>-4.93%</td><td>​</td><td>¥</td><td> 5,779</td><td>​</td><td>4.90%</td><td>​</td><td>¥</td><td> 5,509</td></tr></table> ​ 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 30: NEW YORK As of December 31, 2023, our New York segment consisted of 26.7 million square feet in 60 properties. The 26.7 million square feet is comprised of 20.4 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 50 of the properties, 1,662 units in five residential properties, and our 32.4% interest in Alexander's, which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens. The New York segment also includes nine garages totaling 1.6 million square feet (4,685 spaces). As of December 31, 2023, the occupancy rate for our New York segment was 89.4%. Occupancy and weighted average annual rent per square foot: Office: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="3">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Square Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare FeetAt Share</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">WeightedAverage Annual Escalated RentPer Square Foot</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="2">20,383,000 </td><td></td><td colspan="3"></td><td colspan="2">18,699,000 </td><td></td><td colspan="3"></td><td colspan="2">16,001,000 </td><td></td><td colspan="3"></td><td colspan="2">90.7 </td><td>%</td><td colspan="3"></td><td>$</td><td>86.30 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="2">19,902,000 </td><td></td><td colspan="3"></td><td colspan="2">18,724,000 </td><td></td><td colspan="3"></td><td colspan="2">16,028,000 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td><td colspan="2">83.98 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="2">20,630,000 </td><td></td><td colspan="3"></td><td colspan="2">19,442,000 </td><td></td><td colspan="3"></td><td colspan="2">16,757,000 </td><td></td><td colspan="3"></td><td colspan="2">92.2 </td><td>%</td><td colspan="3"></td><td colspan="2">80.01 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="2">20,586,000 </td><td></td><td colspan="3"></td><td colspan="2">18,361,000 </td><td></td><td colspan="3"></td><td colspan="2">15,413,000 </td><td></td><td colspan="3"></td><td colspan="2">93.4 </td><td>%</td><td colspan="3"></td><td colspan="2">79.05 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="2">20,666,000 </td><td></td><td colspan="3"></td><td colspan="2">19,070,000 </td><td></td><td colspan="3"></td><td colspan="2">16,195,000 </td><td></td><td colspan="3"></td><td colspan="2">96.9 </td><td>%</td><td colspan="3"></td><td colspan="2">76.26 </td><td></td></tr></table> Retail: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="3">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Square Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare FeetAt Share</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">WeightedAverage Annual Escalated RentPer Square Foot</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="2">2,394,000 </td><td></td><td colspan="3"></td><td colspan="2">2,123,000 </td><td></td><td colspan="3"></td><td colspan="2">1,684,000 </td><td></td><td colspan="3"></td><td colspan="2">74.9 </td><td>%</td><td colspan="3"></td><td>$</td><td>224.88 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="2">2,556,000 </td><td></td><td colspan="3"></td><td colspan="2">2,289,000 </td><td></td><td colspan="3"></td><td colspan="2">1,851,000 </td><td></td><td colspan="3"></td><td colspan="2">74.4 </td><td>%</td><td colspan="3"></td><td colspan="2">215.72 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="2">2,693,000 </td><td></td><td colspan="3"></td><td colspan="2">2,267,000 </td><td></td><td colspan="3"></td><td colspan="2">1,825,000 </td><td></td><td colspan="3"></td><td colspan="2">80.7 </td><td>%</td><td colspan="3"></td><td colspan="2">214.22 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="2">2,690,000 </td><td></td><td colspan="3"></td><td colspan="2">2,275,000 </td><td></td><td colspan="3"></td><td colspan="2">1,805,000 </td><td></td><td colspan="3"></td><td colspan="2">78.8 </td><td>%</td><td colspan="3"></td><td colspan="2">226.38 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="2">2,712,000 </td><td></td><td colspan="3"></td><td colspan="2">2,300,000 </td><td></td><td colspan="3"></td><td colspan="2">1,842,000 </td><td></td><td colspan="3"></td><td colspan="2">94.5 </td><td>%</td><td colspan="3"></td><td colspan="2">209.86 </td><td></td></tr></table> Occupancy and average monthly rent per unit: Residential: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="6"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="6">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Number of Units</td><td colspan="3"></td><td colspan="3">TotalNumber of Units</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">Average MonthlyRent Per Unit</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,974 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="2">96.8 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,115 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,976 </td><td></td><td colspan="3"></td><td colspan="2">941 </td><td></td><td colspan="3"></td><td colspan="2">96.7 </td><td>%</td><td colspan="3"></td><td colspan="2">3,882 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="3"></td><td colspan="2">97.0 </td><td>%</td><td colspan="3"></td><td colspan="2">3,776 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,995 </td><td></td><td colspan="3"></td><td colspan="2">960 </td><td></td><td colspan="3"></td><td colspan="2">84.9 </td><td>%</td><td colspan="3"></td><td colspan="2">3,714 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,996 </td><td></td><td colspan="3"></td><td colspan="2">960 </td><td></td><td colspan="3"></td><td colspan="2">97.5 </td><td>%</td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr></table> 30 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 44: NOI At Share by Segment for the Years Ended December 31, 2023 and 2022 - continued The elements of our New York and Other NOI at share for the years ended December 31, 2023 and 2022 are summarized below. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="9">For the Year Ended December 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td>$</td><td>727,000 </td><td></td><td colspan="3"></td><td>$</td><td>718,686 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retail</td><td colspan="2">188,561 </td><td></td><td colspan="3"></td><td colspan="2">205,753 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Residential</td><td colspan="2">21,910 </td><td></td><td colspan="3"></td><td colspan="2">19,600 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">40,098 </td><td></td><td colspan="3"></td><td colspan="2">37,469 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total New York</td><td colspan="2">977,569 </td><td></td><td colspan="3"></td><td colspan="2">981,508 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART(1)</td><td colspan="2">61,519 </td><td></td><td colspan="3"></td><td colspan="2">96,906 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street(2)</td><td colspan="2">82,965 </td><td></td><td colspan="3"></td><td colspan="2">65,692 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">21,160 </td><td></td><td colspan="3"></td><td colspan="2">17,942 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Other</td><td colspan="2">165,644 </td><td></td><td colspan="3"></td><td colspan="2">180,540 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NOI at share</td><td>$</td><td>1,143,213 </td><td></td><td colspan="3"></td><td>$</td><td>1,162,048 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> ________________________________________ See notes below. The elements of our New York and Other NOI at share - cash basis for the years ended December 31, 2023 and 2022 are summarized below. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="9">For the Year Ended December 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td>$</td><td>726,914 </td><td></td><td colspan="3"></td><td>$</td><td>715,407 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retail</td><td colspan="2">180,932 </td><td></td><td colspan="3"></td><td colspan="2">188,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Residential</td><td colspan="2">20,588 </td><td></td><td colspan="3"></td><td colspan="2">18,214 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">41,435 </td><td></td><td colspan="3"></td><td colspan="2">40,532 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total New York</td><td colspan="2">969,869 </td><td></td><td colspan="3"></td><td colspan="2">962,999 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART(1)</td><td colspan="2">62,579 </td><td></td><td colspan="3"></td><td colspan="2">101,912 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street(2)</td><td colspan="2">85,819 </td><td></td><td colspan="3"></td><td colspan="2">67,813 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">21,569 </td><td></td><td colspan="3"></td><td colspan="2">18,344 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Other</td><td colspan="2">169,967 </td><td></td><td colspan="3"></td><td colspan="2">188,069 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NOI at share - cash basis</td><td>$</td><td>1,139,836 </td><td></td><td colspan="3"></td><td>$</td><td>1,151,068 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> ________________________________________ (1)2022 includes prior period accrual adjustment related to changes in the tax-assessed value of THE MART. (2)2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses. 44
<table><tr><td></td><td>●</td><td>a non-cash gain in 2022 on the disposal, exchange, or revaluation of equity interests, net of $121.2 million, or $0.32 per diluted share/unit,</td></tr></table><table><tr><td></td><td>●</td><td>increased interest expense in 2023 of $93.4 million, or $0.25 per diluted share/unit, primarily due to new USD and EUR bond issuances as well as increases to rates on variable rate mortgages,</td></tr></table><table><tr><td></td><td>●</td><td>increased other expenses in 2023 of $35.6 million, or $0.10 per diluted share/unit,</td></tr></table><table><tr><td></td><td>●</td><td>increased depreciation and amortization in 2023 of $34.7 million, or $0.09 per diluted share/unit, and</td></tr></table><table><tr><td></td><td>●</td><td>increased property operating expenses in 2023 of $25.2 million, or $0.07 per diluted share/unit.</td></tr></table> Portfolio NOI increased 4.9% in 2023 as compared to 2022. Average base minimum rent for U.S. Malls and Premium Outlets increased 3.1% to $56.82 psf as of December 31, 2023, from $55.13 psf as of December 31, 2022. Ending occupancy for our U.S. Malls and Premium Outlets increased 0.9% to 95.8% as of December 31, 2023, from 94.9% as of December 31, 2022, primarily due to strong leasing demand. Our effective overall borrowing rate at December 31, 2023 on our consolidated indebtedness increased 27 basis points to 3.49% as compared to 3.22% at December 31, 2022. This increase was primarily due to an increase in the effective overall borrowing rate on variable rate debt of 198 basis points (5.91% at December 31, 2023 as compared to 3.93% at December 31, 2022) due to increasing benchmark rates, partially offset by a decrease in the amount of our variable rate debt and an increase in fixed rate debt. The weighted average years to maturity of our consolidated indebtedness was 8.1 years and 7.5 years at December 31, 2023 and 2022, respectively. Our financing activity for the year ended December 31, 2023 included: <table><tr><td></td><td>●</td><td>the Operating Partnership completing on November 14, 2023, the issuance of €750.0 million senior unsecured bonds ($808.0 million U.S. dollar equivalent) with a maturity date of November 14, 2026 and a fixed interest rate of 3.50%. The bonds are exchangeable into shares of Klépierre at the option of the holder of the bond at an initial common price of €27.2092. We may elect to settle the exchange with cash instead of shares. Proceeds were used to repay €750.0 million ($815.4 million U.S. dollar equivalent) outstanding under the Supplemental Facility on November 17, 2023.</td></tr></table><table><tr><td></td><td>●</td><td>the Operating Partnership completing on November 9, 2023, the issuance of the following senior unsecured notes: $500 million with a fixed interest rate of 6.25% and $500 million with a fixed interest rate of 6.65%, with maturity dates of January 15, 2034 and January 15, 2054, respectively. </td></tr></table><table><tr><td></td><td>●</td><td>borrowing $180.0 million under the Credit Facility and subsequently unencumbering two properties,</td></tr></table> <table><tr><td></td><td>●</td><td>completing, on June 1, 2023 the redemption at par of the Operating Partnership's $600 million 2.75% notes at maturity,</td></tr></table> <table><tr><td></td><td>●</td><td>the Operating Partnership completing on March 8, 2023, the issuance of the following senior unsecured notes: $650 million with a fixed interest rate of 5.5% and $650 million with a fixed interest rate of 5.85%, with maturity dates of March 8, 2033 and March 8, 2053, respectively. A portion of the net proceeds were used to fund the optional redemption at par of the Operating Partnerships $500 million floating interest rate notes due January 2024 on March 13, 2023, and</td></tr></table><table><tr><td></td><td>●</td><td>Amending, restating, extending, and increasing our existing $4.0 billion unsecured revolving credit facility on March 14, 2023 with a new $5.0 billion unsecured revolving credit facility.</td></tr></table> United States Portfolio Data The portfolio data discussed in this overview includes the following key operating statistics: ending occupancy, and average base minimum rent per square foot. We include acquired properties in this data beginning in the year of acquisition and remove disposed properties in the year of disposition. For comparative information purposes, we separate the information related to The Mills and TRG from our other U.S. operations. We also do not include any information for properties located outside the United States. 61 , The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: <table><tr><td></td><td>●</td><td>properties that are consolidated in our consolidated financial statements,</td></tr></table><table><tr><td></td><td>●</td><td>properties we account for under the equity method of accounting as joint ventures, and</td></tr></table><table><tr><td></td><td>●</td><td>the foregoing two categories of properties on a total portfolio basis.</td></tr></table> <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2022</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2021</td><td>​</td></tr><tr><td>U.S. Malls and Premium Outlets:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>​</td><td>95.7%</td><td>​</td><td>80 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>140 bps</td><td>​</td><td>​</td><td>93.5%</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>​</td><td>96.1%</td><td>​</td><td>120 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>180 bps</td><td>​</td><td>​</td><td>93.1%</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>​</td><td>95.8%</td><td>​</td><td>90 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>150 bps</td><td>​</td><td>​</td><td>93.4%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>$</td><td> 55.47</td><td>​</td><td>2.8%</td><td>​</td><td>$</td><td> 53.95</td><td>​</td><td>2.6%</td><td>​</td><td>$</td><td> 52.59</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>$</td><td> 60.59</td><td>​</td><td>3.8%</td><td>​</td><td>$</td><td> 58.36</td><td>​</td><td>1.4%</td><td>​</td><td>$</td><td> 57.55</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>$</td><td> 56.82</td><td>​</td><td>3.1%</td><td>​</td><td>$</td><td> 55.13</td><td>​</td><td>2.3%</td><td>​</td><td>$</td><td> 53.91</td><td>​</td></tr><tr><td>U.S. TRG:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>95.7%</td><td>​</td><td>120 bps</td><td>​</td><td> </td><td>94.5%</td><td>​</td><td>330 bps</td><td>​</td><td> </td><td>91.2%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 65.01</td><td>​</td><td>5.3%</td><td>​</td><td>$</td><td> 61.76</td><td>​</td><td>5.2%</td><td>​</td><td>$</td><td> 58.69</td><td>​</td></tr><tr><td>The Mills:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>97.8%</td><td>​</td><td>-40 bps</td><td>​</td><td> </td><td>98.2%</td><td>​</td><td>60 bps</td><td>​</td><td> </td><td>97.6%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 36.38</td><td>​</td><td>4.3%</td><td>​</td><td>$</td><td> 34.89</td><td>​</td><td>3.2%</td><td>​</td><td>$</td><td> 33.80</td><td>​</td></tr></table> <table><tr><td>(1)</td><td>Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.</td></tr></table> Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td>​</td><td colspan="2">2023</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2022</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2021</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>99.7%</td><td>​</td><td>-10 bps</td><td>​</td><td>​</td><td>99.8%</td><td>​</td><td>0 bps</td><td>​</td><td>​</td><td>99.8%</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>¥</td><td> 5,494</td><td>​</td><td>-4.93%</td><td>​</td><td>¥</td><td> 5,779</td><td>​</td><td>4.90%</td><td>​</td><td>¥</td><td> 5,509</td></tr></table> ​ 62 , NEW YORK As of December 31, 2023, our New York segment consisted of 26.7 million square feet in 60 properties. The 26.7 million square feet is comprised of 20.4 million square feet of Manhattan office in 30 of the properties, 2.4 million square feet of Manhattan street retail in 50 of the properties, 1,662 units in five residential properties, and our 32.4% interest in Alexander's, which owns five properties in the greater New York metropolitan area, including 731 Lexington Avenue, the 1.1 million square foot Bloomberg, L.P. headquarters building, and The Alexander, a 312-unit apartment tower in Queens. The New York segment also includes nine garages totaling 1.6 million square feet (4,685 spaces). As of December 31, 2023, the occupancy rate for our New York segment was 89.4%. Occupancy and weighted average annual rent per square foot: Office: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="3">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Square Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare FeetAt Share</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">WeightedAverage Annual Escalated RentPer Square Foot</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="2">20,383,000 </td><td></td><td colspan="3"></td><td colspan="2">18,699,000 </td><td></td><td colspan="3"></td><td colspan="2">16,001,000 </td><td></td><td colspan="3"></td><td colspan="2">90.7 </td><td>%</td><td colspan="3"></td><td>$</td><td>86.30 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="2">19,902,000 </td><td></td><td colspan="3"></td><td colspan="2">18,724,000 </td><td></td><td colspan="3"></td><td colspan="2">16,028,000 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td><td colspan="2">83.98 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="2">20,630,000 </td><td></td><td colspan="3"></td><td colspan="2">19,442,000 </td><td></td><td colspan="3"></td><td colspan="2">16,757,000 </td><td></td><td colspan="3"></td><td colspan="2">92.2 </td><td>%</td><td colspan="3"></td><td colspan="2">80.01 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="2">20,586,000 </td><td></td><td colspan="3"></td><td colspan="2">18,361,000 </td><td></td><td colspan="3"></td><td colspan="2">15,413,000 </td><td></td><td colspan="3"></td><td colspan="2">93.4 </td><td>%</td><td colspan="3"></td><td colspan="2">79.05 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="2">20,666,000 </td><td></td><td colspan="3"></td><td colspan="2">19,070,000 </td><td></td><td colspan="3"></td><td colspan="2">16,195,000 </td><td></td><td colspan="3"></td><td colspan="2">96.9 </td><td>%</td><td colspan="3"></td><td colspan="2">76.26 </td><td></td></tr></table> Retail: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="3">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Square Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare Feet</td><td colspan="3"></td><td colspan="3">In ServiceSquare FeetAt Share</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">WeightedAverage Annual Escalated RentPer Square Foot</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="2">2,394,000 </td><td></td><td colspan="3"></td><td colspan="2">2,123,000 </td><td></td><td colspan="3"></td><td colspan="2">1,684,000 </td><td></td><td colspan="3"></td><td colspan="2">74.9 </td><td>%</td><td colspan="3"></td><td>$</td><td>224.88 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="2">2,556,000 </td><td></td><td colspan="3"></td><td colspan="2">2,289,000 </td><td></td><td colspan="3"></td><td colspan="2">1,851,000 </td><td></td><td colspan="3"></td><td colspan="2">74.4 </td><td>%</td><td colspan="3"></td><td colspan="2">215.72 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="2">2,693,000 </td><td></td><td colspan="3"></td><td colspan="2">2,267,000 </td><td></td><td colspan="3"></td><td colspan="2">1,825,000 </td><td></td><td colspan="3"></td><td colspan="2">80.7 </td><td>%</td><td colspan="3"></td><td colspan="2">214.22 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="2">2,690,000 </td><td></td><td colspan="3"></td><td colspan="2">2,275,000 </td><td></td><td colspan="3"></td><td colspan="2">1,805,000 </td><td></td><td colspan="3"></td><td colspan="2">78.8 </td><td>%</td><td colspan="3"></td><td colspan="2">226.38 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="2">2,712,000 </td><td></td><td colspan="3"></td><td colspan="2">2,300,000 </td><td></td><td colspan="3"></td><td colspan="2">1,842,000 </td><td></td><td colspan="3"></td><td colspan="2">94.5 </td><td>%</td><td colspan="3"></td><td colspan="2">209.86 </td><td></td></tr></table> Occupancy and average monthly rent per unit: Residential: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="6"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="15">Vornado's Ownership Interest</td></tr><tr><td colspan="6">As of December 31,</td><td colspan="3"></td><td colspan="3">Total Number of Units</td><td colspan="3"></td><td colspan="3">TotalNumber of Units</td><td colspan="3"></td><td colspan="3">OccupancyRate</td><td colspan="3"></td><td colspan="3">Average MonthlyRent Per Unit</td></tr><tr><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,974 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="2">96.8 </td><td>%</td><td colspan="3"></td><td>$</td><td>4,115 </td><td></td></tr><tr><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,976 </td><td></td><td colspan="3"></td><td colspan="2">941 </td><td></td><td colspan="3"></td><td colspan="2">96.7 </td><td>%</td><td colspan="3"></td><td colspan="2">3,882 </td><td></td></tr><tr><td colspan="3">2021</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="3"></td><td colspan="2">97.0 </td><td>%</td><td colspan="3"></td><td colspan="2">3,776 </td><td></td></tr><tr><td colspan="3">2020</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,995 </td><td></td><td colspan="3"></td><td colspan="2">960 </td><td></td><td colspan="3"></td><td colspan="2">84.9 </td><td>%</td><td colspan="3"></td><td colspan="2">3,714 </td><td></td></tr><tr><td colspan="3">2019</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,996 </td><td></td><td colspan="3"></td><td colspan="2">960 </td><td></td><td colspan="3"></td><td colspan="2">97.5 </td><td>%</td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr></table> 30 , NOI At Share by Segment for the Years Ended December 31, 2023 and 2022 - continued The elements of our New York and Other NOI at share for the years ended December 31, 2023 and 2022 are summarized below. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="9">For the Year Ended December 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td>$</td><td>727,000 </td><td></td><td colspan="3"></td><td>$</td><td>718,686 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retail</td><td colspan="2">188,561 </td><td></td><td colspan="3"></td><td colspan="2">205,753 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Residential</td><td colspan="2">21,910 </td><td></td><td colspan="3"></td><td colspan="2">19,600 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">40,098 </td><td></td><td colspan="3"></td><td colspan="2">37,469 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total New York</td><td colspan="2">977,569 </td><td></td><td colspan="3"></td><td colspan="2">981,508 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART(1)</td><td colspan="2">61,519 </td><td></td><td colspan="3"></td><td colspan="2">96,906 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street(2)</td><td colspan="2">82,965 </td><td></td><td colspan="3"></td><td colspan="2">65,692 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">21,160 </td><td></td><td colspan="3"></td><td colspan="2">17,942 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Other</td><td colspan="2">165,644 </td><td></td><td colspan="3"></td><td colspan="2">180,540 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NOI at share</td><td>$</td><td>1,143,213 </td><td></td><td colspan="3"></td><td>$</td><td>1,162,048 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> ________________________________________ See notes below. The elements of our New York and Other NOI at share - cash basis for the years ended December 31, 2023 and 2022 are summarized below. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="9">For the Year Ended December 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td>$</td><td>726,914 </td><td></td><td colspan="3"></td><td>$</td><td>715,407 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Retail</td><td colspan="2">180,932 </td><td></td><td colspan="3"></td><td colspan="2">188,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Residential</td><td colspan="2">20,588 </td><td></td><td colspan="3"></td><td colspan="2">18,214 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">41,435 </td><td></td><td colspan="3"></td><td colspan="2">40,532 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total New York</td><td colspan="2">969,869 </td><td></td><td colspan="3"></td><td colspan="2">962,999 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART(1)</td><td colspan="2">62,579 </td><td></td><td colspan="3"></td><td colspan="2">101,912 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street(2)</td><td colspan="2">85,819 </td><td></td><td colspan="3"></td><td colspan="2">67,813 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other investments</td><td colspan="2">21,569 </td><td></td><td colspan="3"></td><td colspan="2">18,344 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Other</td><td colspan="2">169,967 </td><td></td><td colspan="3"></td><td colspan="2">188,069 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">NOI at share - cash basis</td><td>$</td><td>1,139,836 </td><td></td><td colspan="3"></td><td>$</td><td>1,151,068 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> ________________________________________ (1)2022 includes prior period accrual adjustment related to changes in the tax-assessed value of THE MART. (2)2023 includes our $14,103 share of the receipt of a tenant settlement, net of legal expenses. 44
q_com068
Compare the tenant improvement and leasing commission costs for Simon Property Group and Vornado Realty Trust for the year 2023.
For the year 2023, Simon Property Group's average tenant allowance on new leases was $64.31 per square foot, and the average annual initial base minimum rent for new leases was $66.39 per square foot. Vornado Realty Trust's tenant improvements and leasing commissions for New York Office space were $7.44 per square foot per annum, for New York Retail space were $21.90 per square foot per annum, for THE MART were $11.44 per square foot per annum, and for 555 California Street were $22.92 per square foot per annum. Vornado Realty Trust's tenant improvement and leasing commission costs vary significantly across different segments, while Simon Property Group's costs are more uniform across its portfolio.
Comparison
62;40, 41, 42
0001558370-24-001532;0000899689-24-000005
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations;ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 62: The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: | | | | |---:|:---|:---------------------------------------------------------------------------| | 0 | ● | properties that are consolidated in our consolidated financial statements, | | | | | |---:|:---|:---------------------------------------------------------------------------------------| | 0 | ● | properties we account for under the equity method of accounting as joint ventures, and | | | | | |---:|:---|:-----------------------------------------------------------------------| | 0 | ● | the foregoing two categories of properties on a total portfolio basis. | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-----|:------|:-----------|:--------------|:-----|:---|:-----------|:---|:--------------|:---|:---|:------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | | 2 | ​ | | 2023 | | Change (1) | | 2022 | | Change (1) | | 2021 | ​ | | | | | 3 | U.S. Malls and Premium Outlets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Ending Occupancy | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Consolidated | ​ | ​ | 95.7% | ​ | 80 bps | ​ | ​ | 94.9% | ​ | 140 bps | ​ | ​ | 93.5% | ​ | | 6 | Unconsolidated | ​ | ​ | 96.1% | ​ | 120 bps | ​ | ​ | 94.9% | ​ | 180 bps | ​ | ​ | 93.1% | ​ | | 7 | Total Portfolio | ​ | ​ | 95.8% | ​ | 90 bps | ​ | ​ | 94.9% | ​ | 150 bps | ​ | ​ | 93.4% | ​ | | 8 | Average Base Minimum Rent per Square Foot | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 9 | Consolidated | ​ | $ | 55.47 | ​ | 2.8% | ​ | $ | 53.95 | ​ | 2.6% | ​ | $ | 52.59 | ​ | | 10 | Unconsolidated | ​ | $ | 60.59 | ​ | 3.8% | ​ | $ | 58.36 | ​ | 1.4% | ​ | $ | 57.55 | ​ | | 11 | Total Portfolio | ​ | $ | 56.82 | ​ | 3.1% | ​ | $ | 55.13 | ​ | 2.3% | ​ | $ | 53.91 | ​ | | 12 | U.S. TRG: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 13 | Ending Occupancy | ​ | | 95.7% | ​ | 120 bps | ​ | | 94.5% | ​ | 330 bps | ​ | | 91.2% | ​ | | 14 | Average Base Minimum Rent per Square Foot | ​ | $ | 65.01 | ​ | 5.3% | ​ | $ | 61.76 | ​ | 5.2% | ​ | $ | 58.69 | ​ | | 15 | The Mills: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Ending Occupancy | ​ | | 97.8% | ​ | -40 bps | ​ | | 98.2% | ​ | 60 bps | ​ | | 97.6% | ​ | | 17 | Average Base Minimum Rent per Square Foot | ​ | $ | 36.38 | ​ | 4.3% | ​ | $ | 34.89 | ​ | 3.2% | ​ | $ | 33.80 | ​ | | | | | |---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | (1) | Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period. | Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-------------|:------|:--------------|:--------|:-------------|:---|:--------------|:---|:-------------|:---|:---|:------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | %/basis point | | December 31, | | %/basis point | | December 31, | | | | | 2 | ​ | ​ | 2023 | ​ | Change | ​ | 2022 | ​ | Change | ​ | 2021 | | | | | 3 | Ending Occupancy | ​ | ​ | 99.7% | ​ | -10 bps | ​ | ​ | 99.8% | ​ | 0 bps | ​ | ​ | 99.8% | | 4 | Average Base Minimum Rent per Square Foot | ​ | ¥ | 5,494 | ​ | -4.93% | ​ | ¥ | 5,779 | ​ | 4.90% | ​ | ¥ | 5,509 | ​ 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 40: Overview - continued Financings - continued Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2023. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments. | | | | | | | | | | | | |---:|:---------------------------------------------------------|:--------------------------|:--------|:--------------------|:------|:----------------|:------|:---------------------|:----------|:------| | 1 | (Amounts in thousands) | Notional Amount(at share) | | All-In Swapped Rate | | Expiration Date | | Variable Rate Spread | | | | 2 | Interest rate swaps: | | | | | | | | | | | 3 | 555 California Street (effective 05/24) | $ | 840,000 | | | 6.03% | | 05/26 | | S+205 | | 4 | PENN 11 (effective 03/24)(1) | 250,000 | | | 6.34% | | 10/25 | | S+206 | | | 5 | Unsecured term loan(2) | 150,000 | | | 5.12% | | 07/25 | | S+129 | | | 7 | | | | Index Strike Rate | | | | | | | | 8 | Interest rate caps: | | | | | | | | | | | 9 | 1290 Avenue of the Americas (70.0% interest)(3) | $ | 665,000 | | | 1.00% | | 11/25 | | S+162 | | 10 | One Park Avenue (effective 3/24) | 525,000 | | | 3.89% | | 03/25 | | S+122 | | | 11 | 640 Fifth Avenue (52.0% interest) | 259,925 | | | 4.00% | | 05/24 | | S+111 | | | 12 | 731 Lexington Avenue office condominium (32.4% interest) | 162,000 | | | 6.00% | | 06/24 | | Prime + 0 | | | 13 | 150 West 34th Street | 75,000 | | | 5.00% | | 02/26 | | S+215 | | | 14 | 512 West 22nd Street (55.0% interest) | 71,088 | | | 4.50% | | 06/25 | | S+200 | | ________________________ (1)The $500,000 mortgage loan is currently subject to a $500,000 interest rate swap with an all-in swapped rate of 2.22% and expires in March 2024. In January 2024, we entered into a forward swap arrangement for the remaining $250,000 balance of the $500,000 PENN 11 mortgage loan which is effective upon the March 2024 expiration of the current in-place swap. Together with the forward swap above, the loan will bear interest at an all-in swapped rate of 6.28% effective March 2024 through October 2025. (2)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. (3)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt in Part II, Item 8 of this Annual Report on Form 10-K for details. Leasing Activity For the Year Ended December 31, 2023 The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. •2,133,000 square feet of New York Office space (1,661,000 square feet at share) at an initial rent of $98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were $7.44 per square foot per annum, or 7.5% of initial rent. •299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of $118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were $21.90 per square foot per annum, or 18.5% of initial rent. •337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of $52.97 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were $11.44 per square foot per annum, or 21.6% of initial rent. •10,000 square feet at 555 California Street (7,000 square feet at share) at an initial rent of $134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $22.92 per square foot per annum, or 17.0% of initial rent. 40 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 41: Overview - continued Square footage (in service) and Occupancy as of December 31, 2023 | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:---------|:-------|:------------|:-----|:---|:----| | 1 | (Square feet in thousands) | | | Square Feet (in service) | | | | | | | | 2 | | Number ofproperties | | TotalPortfolio | OurShare | | Occupancy % | | | | | 3 | New York: | | | | | | | | | | | 4 | Office | 30 | (1) | 18,699 | | 16,001 | | 90.7 | % | | | 5 | Retail (includes retail properties that are in the base of our office properties) | 50 | (1) | 2,123 | | 1,684 | | 74.9 | % | | | 6 | Residential - 1,974 units(2) | 5 | (1) | 1,479 | | 745 | | 96.8 | % | (2) | | 7 | Alexander's | 5 | | 2,331 | | 755 | | 92.6 | % | (2) | | 9 | | | | 24,632 | | 19,185 | | 89.4 | % | | | 11 | Other: | | | | | | | | | | | 12 | THE MART | 3 | | 3,688 | | 3,679 | | 79.2 | % | | | 13 | 555 California Street | 3 | | 1,819 | | 1,274 | | 94.5 | % | | | 14 | Other | 11 | | 2,537 | | 1,202 | | 91.9 | % | | | 15 | | | | 8,044 | | 6,155 | | | | | | 17 | Total square feet as of December 31, 2023 | | | 32,676 | | 25,340 | | | | | ________________________________________ See notes below. Square footage (in service) and Occupancy as of December 31, 2022 | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:-------|:---------|:-------|:------------|:-----|:-----|:---|:----| | 1 | (Square feet in thousands) | | | Square Feet (in service) | | | | | | | | | | 2 | | Number ofproperties | | TotalPortfolio | | OurShare | | Occupancy % | | | | | | 3 | New York: | | | | | | | | | | | | | 4 | Office | 30 | (1) | | 18,724 | | | 16,028 | | 91.9 | % | | | 5 | Retail (includes retail properties that are in the base of our office properties) | 56 | (1) | | 2,289 | | | 1,851 | | 74.4 | % | | | 6 | Residential - 1,976 units(2) | 6 | (1) | | 1,499 | | | 766 | | 96.7 | % | (2) | | 7 | Alexander's | 6 | | | 2,241 | | | 726 | | 96.4 | % | (2) | | 8 | | | | 24,753 | | | 19,371 | | 90.4 | % | | | | 10 | Other: | | | | | | | | | | | | | 11 | THE MART | 4 | | 3,635 | | | 3,626 | | 81.6 | % | | | | 12 | 555 California Street | 3 | | 1,819 | | | 1,273 | | 94.7 | % | | | | 13 | Other | 11 | | 2,532 | | | 1,197 | | 92.6 | % | | | | 14 | | | | 7,986 | | | 6,096 | | | | | | | 16 | Total square feet as of December 31, 2022 | | | 32,739 | | | 25,467 | | | | | | ________________________________________ (1)Reflects the Office, Retail and Residential space within our 65 and 71 total New York properties as of December 31, 2023 and 2022, respectively. (2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy. 41 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 42: Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K. Acquisitions of Real Estate Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets). We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income. Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income. During the year ended December 31, 2023, we recognized an aggregate $95,465,000 of impairment losses directly attributable to decreases in the value of depreciable real estate held by certain wholly owned and partially owned entities, of which $22,176,000 was attributable to noncontrolling interests. See Note 5 - Investments in Partially Owned Entities and Note 15 - Fair Value Measurements to our consolidated financial statements in this Annual Report on Form 10-K for further details. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results. Collectability Assessments for Revenue Recognition We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income. Recent Accounting Pronouncements See Note 2 – Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements. 42
The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: | | | | |---:|:---|:---------------------------------------------------------------------------| | 0 | ● | properties that are consolidated in our consolidated financial statements, | | | | | |---:|:---|:---------------------------------------------------------------------------------------| | 0 | ● | properties we account for under the equity method of accounting as joint ventures, and | | | | | |---:|:---|:-----------------------------------------------------------------------| | 0 | ● | the foregoing two categories of properties on a total portfolio basis. | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-----|:------|:-----------|:--------------|:-----|:---|:-----------|:---|:--------------|:---|:---|:------|:---| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | %/Basis Point | ​ | ​ | ​ | ​ | | 2 | ​ | | 2023 | | Change (1) | | 2022 | | Change (1) | | 2021 | ​ | | | | | 3 | U.S. Malls and Premium Outlets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 4 | Ending Occupancy | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 5 | Consolidated | ​ | ​ | 95.7% | ​ | 80 bps | ​ | ​ | 94.9% | ​ | 140 bps | ​ | ​ | 93.5% | ​ | | 6 | Unconsolidated | ​ | ​ | 96.1% | ​ | 120 bps | ​ | ​ | 94.9% | ​ | 180 bps | ​ | ​ | 93.1% | ​ | | 7 | Total Portfolio | ​ | ​ | 95.8% | ​ | 90 bps | ​ | ​ | 94.9% | ​ | 150 bps | ​ | ​ | 93.4% | ​ | | 8 | Average Base Minimum Rent per Square Foot | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 9 | Consolidated | ​ | $ | 55.47 | ​ | 2.8% | ​ | $ | 53.95 | ​ | 2.6% | ​ | $ | 52.59 | ​ | | 10 | Unconsolidated | ​ | $ | 60.59 | ​ | 3.8% | ​ | $ | 58.36 | ​ | 1.4% | ​ | $ | 57.55 | ​ | | 11 | Total Portfolio | ​ | $ | 56.82 | ​ | 3.1% | ​ | $ | 55.13 | ​ | 2.3% | ​ | $ | 53.91 | ​ | | 12 | U.S. TRG: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 13 | Ending Occupancy | ​ | | 95.7% | ​ | 120 bps | ​ | | 94.5% | ​ | 330 bps | ​ | | 91.2% | ​ | | 14 | Average Base Minimum Rent per Square Foot | ​ | $ | 65.01 | ​ | 5.3% | ​ | $ | 61.76 | ​ | 5.2% | ​ | $ | 58.69 | ​ | | 15 | The Mills: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 16 | Ending Occupancy | ​ | | 97.8% | ​ | -40 bps | ​ | | 98.2% | ​ | 60 bps | ​ | | 97.6% | ​ | | 17 | Average Base Minimum Rent per Square Foot | ​ | $ | 36.38 | ​ | 4.3% | ​ | $ | 34.89 | ​ | 3.2% | ​ | $ | 33.80 | ​ | | | | | |---:|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------| | 0 | (1) | Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period. | Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. | | | | | | | | | | | | | | | | |---:|:------------------------------------------|:---|:-------------|:------|:--------------|:--------|:-------------|:---|:--------------|:---|:-------------|:---|:---|:------| | 0 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | | 1 | ​ | | December 31, | | %/basis point | | December 31, | | %/basis point | | December 31, | | | | | 2 | ​ | ​ | 2023 | ​ | Change | ​ | 2022 | ​ | Change | ​ | 2021 | | | | | 3 | Ending Occupancy | ​ | ​ | 99.7% | ​ | -10 bps | ​ | ​ | 99.8% | ​ | 0 bps | ​ | ​ | 99.8% | | 4 | Average Base Minimum Rent per Square Foot | ​ | ¥ | 5,494 | ​ | -4.93% | ​ | ¥ | 5,779 | ​ | 4.90% | ​ | ¥ | 5,509 | ​ 62 , Overview - continued Financings - continued Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2023. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments. | | | | | | | | | | | | |---:|:---------------------------------------------------------|:--------------------------|:--------|:--------------------|:------|:----------------|:------|:---------------------|:----------|:------| | 1 | (Amounts in thousands) | Notional Amount(at share) | | All-In Swapped Rate | | Expiration Date | | Variable Rate Spread | | | | 2 | Interest rate swaps: | | | | | | | | | | | 3 | 555 California Street (effective 05/24) | $ | 840,000 | | | 6.03% | | 05/26 | | S+205 | | 4 | PENN 11 (effective 03/24)(1) | 250,000 | | | 6.34% | | 10/25 | | S+206 | | | 5 | Unsecured term loan(2) | 150,000 | | | 5.12% | | 07/25 | | S+129 | | | 7 | | | | Index Strike Rate | | | | | | | | 8 | Interest rate caps: | | | | | | | | | | | 9 | 1290 Avenue of the Americas (70.0% interest)(3) | $ | 665,000 | | | 1.00% | | 11/25 | | S+162 | | 10 | One Park Avenue (effective 3/24) | 525,000 | | | 3.89% | | 03/25 | | S+122 | | | 11 | 640 Fifth Avenue (52.0% interest) | 259,925 | | | 4.00% | | 05/24 | | S+111 | | | 12 | 731 Lexington Avenue office condominium (32.4% interest) | 162,000 | | | 6.00% | | 06/24 | | Prime + 0 | | | 13 | 150 West 34th Street | 75,000 | | | 5.00% | | 02/26 | | S+215 | | | 14 | 512 West 22nd Street (55.0% interest) | 71,088 | | | 4.50% | | 06/25 | | S+200 | | ________________________ (1)The $500,000 mortgage loan is currently subject to a $500,000 interest rate swap with an all-in swapped rate of 2.22% and expires in March 2024. In January 2024, we entered into a forward swap arrangement for the remaining $250,000 balance of the $500,000 PENN 11 mortgage loan which is effective upon the March 2024 expiration of the current in-place swap. Together with the forward swap above, the loan will bear interest at an all-in swapped rate of 6.28% effective March 2024 through October 2025. (2)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. (3)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt in Part II, Item 8 of this Annual Report on Form 10-K for details. Leasing Activity For the Year Ended December 31, 2023 The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. •2,133,000 square feet of New York Office space (1,661,000 square feet at share) at an initial rent of $98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were $7.44 per square foot per annum, or 7.5% of initial rent. •299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of $118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were $21.90 per square foot per annum, or 18.5% of initial rent. •337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of $52.97 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were $11.44 per square foot per annum, or 21.6% of initial rent. •10,000 square feet at 555 California Street (7,000 square feet at share) at an initial rent of $134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $22.92 per square foot per annum, or 17.0% of initial rent. 40 , Overview - continued Square footage (in service) and Occupancy as of December 31, 2023 | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:---------|:-------|:------------|:-----|:---|:----| | 1 | (Square feet in thousands) | | | Square Feet (in service) | | | | | | | | 2 | | Number ofproperties | | TotalPortfolio | OurShare | | Occupancy % | | | | | 3 | New York: | | | | | | | | | | | 4 | Office | 30 | (1) | 18,699 | | 16,001 | | 90.7 | % | | | 5 | Retail (includes retail properties that are in the base of our office properties) | 50 | (1) | 2,123 | | 1,684 | | 74.9 | % | | | 6 | Residential - 1,974 units(2) | 5 | (1) | 1,479 | | 745 | | 96.8 | % | (2) | | 7 | Alexander's | 5 | | 2,331 | | 755 | | 92.6 | % | (2) | | 9 | | | | 24,632 | | 19,185 | | 89.4 | % | | | 11 | Other: | | | | | | | | | | | 12 | THE MART | 3 | | 3,688 | | 3,679 | | 79.2 | % | | | 13 | 555 California Street | 3 | | 1,819 | | 1,274 | | 94.5 | % | | | 14 | Other | 11 | | 2,537 | | 1,202 | | 91.9 | % | | | 15 | | | | 8,044 | | 6,155 | | | | | | 17 | Total square feet as of December 31, 2023 | | | 32,676 | | 25,340 | | | | | ________________________________________ See notes below. Square footage (in service) and Occupancy as of December 31, 2022 | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:--------------------|:----|:-------------------------|:-------|:---------|:-------|:------------|:-----|:-----|:---|:----| | 1 | (Square feet in thousands) | | | Square Feet (in service) | | | | | | | | | | 2 | | Number ofproperties | | TotalPortfolio | | OurShare | | Occupancy % | | | | | | 3 | New York: | | | | | | | | | | | | | 4 | Office | 30 | (1) | | 18,724 | | | 16,028 | | 91.9 | % | | | 5 | Retail (includes retail properties that are in the base of our office properties) | 56 | (1) | | 2,289 | | | 1,851 | | 74.4 | % | | | 6 | Residential - 1,976 units(2) | 6 | (1) | | 1,499 | | | 766 | | 96.7 | % | (2) | | 7 | Alexander's | 6 | | | 2,241 | | | 726 | | 96.4 | % | (2) | | 8 | | | | 24,753 | | | 19,371 | | 90.4 | % | | | | 10 | Other: | | | | | | | | | | | | | 11 | THE MART | 4 | | 3,635 | | | 3,626 | | 81.6 | % | | | | 12 | 555 California Street | 3 | | 1,819 | | | 1,273 | | 94.7 | % | | | | 13 | Other | 11 | | 2,532 | | | 1,197 | | 92.6 | % | | | | 14 | | | | 7,986 | | | 6,096 | | | | | | | 16 | Total square feet as of December 31, 2022 | | | 32,739 | | | 25,467 | | | | | | ________________________________________ (1)Reflects the Office, Retail and Residential space within our 65 and 71 total New York properties as of December 31, 2023 and 2022, respectively. (2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy. 41 , Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K. Acquisitions of Real Estate Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets). We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income. Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income. During the year ended December 31, 2023, we recognized an aggregate $95,465,000 of impairment losses directly attributable to decreases in the value of depreciable real estate held by certain wholly owned and partially owned entities, of which $22,176,000 was attributable to noncontrolling interests. See Note 5 - Investments in Partially Owned Entities and Note 15 - Fair Value Measurements to our consolidated financial statements in this Annual Report on Form 10-K for further details. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results. Collectability Assessments for Revenue Recognition We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income. Recent Accounting Pronouncements See Note 2 – Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements. 42
SIMON PROPERTY GROUP INC /DE/ 10-K form for the fiscal year ended 2023-12-31, page 62: The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: <table><tr><td></td><td>●</td><td>properties that are consolidated in our consolidated financial statements,</td></tr></table><table><tr><td></td><td>●</td><td>properties we account for under the equity method of accounting as joint ventures, and</td></tr></table><table><tr><td></td><td>●</td><td>the foregoing two categories of properties on a total portfolio basis.</td></tr></table> <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2022</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2021</td><td>​</td></tr><tr><td>U.S. Malls and Premium Outlets:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>​</td><td>95.7%</td><td>​</td><td>80 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>140 bps</td><td>​</td><td>​</td><td>93.5%</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>​</td><td>96.1%</td><td>​</td><td>120 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>180 bps</td><td>​</td><td>​</td><td>93.1%</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>​</td><td>95.8%</td><td>​</td><td>90 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>150 bps</td><td>​</td><td>​</td><td>93.4%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>$</td><td> 55.47</td><td>​</td><td>2.8%</td><td>​</td><td>$</td><td> 53.95</td><td>​</td><td>2.6%</td><td>​</td><td>$</td><td> 52.59</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>$</td><td> 60.59</td><td>​</td><td>3.8%</td><td>​</td><td>$</td><td> 58.36</td><td>​</td><td>1.4%</td><td>​</td><td>$</td><td> 57.55</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>$</td><td> 56.82</td><td>​</td><td>3.1%</td><td>​</td><td>$</td><td> 55.13</td><td>​</td><td>2.3%</td><td>​</td><td>$</td><td> 53.91</td><td>​</td></tr><tr><td>U.S. TRG:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>95.7%</td><td>​</td><td>120 bps</td><td>​</td><td> </td><td>94.5%</td><td>​</td><td>330 bps</td><td>​</td><td> </td><td>91.2%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 65.01</td><td>​</td><td>5.3%</td><td>​</td><td>$</td><td> 61.76</td><td>​</td><td>5.2%</td><td>​</td><td>$</td><td> 58.69</td><td>​</td></tr><tr><td>The Mills:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>97.8%</td><td>​</td><td>-40 bps</td><td>​</td><td> </td><td>98.2%</td><td>​</td><td>60 bps</td><td>​</td><td> </td><td>97.6%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 36.38</td><td>​</td><td>4.3%</td><td>​</td><td>$</td><td> 34.89</td><td>​</td><td>3.2%</td><td>​</td><td>$</td><td> 33.80</td><td>​</td></tr></table> <table><tr><td>(1)</td><td>Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.</td></tr></table> Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td>​</td><td colspan="2">2023</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2022</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2021</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>99.7%</td><td>​</td><td>-10 bps</td><td>​</td><td>​</td><td>99.8%</td><td>​</td><td>0 bps</td><td>​</td><td>​</td><td>99.8%</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>¥</td><td> 5,494</td><td>​</td><td>-4.93%</td><td>​</td><td>¥</td><td> 5,779</td><td>​</td><td>4.90%</td><td>​</td><td>¥</td><td> 5,509</td></tr></table> ​ 62 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 40: Overview - continued Financings - continued Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2023. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="3"></td><td colspan="3">Notional Amount(at share)</td><td colspan="3"></td><td colspan="3">All-In Swapped Rate</td><td colspan="3"></td><td colspan="3">Expiration Date</td><td colspan="3"></td><td colspan="3">Variable Rate Spread</td></tr><tr><td colspan="3">Interest rate swaps:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street (effective 05/24)</td><td colspan="3"></td><td>$</td><td>840,000 </td><td></td><td colspan="3"></td><td colspan="3">6.03%</td><td colspan="3"></td><td colspan="3">05/26</td><td colspan="3"></td><td colspan="3">S+205</td></tr><tr><td colspan="3">PENN 11 (effective 03/24)(1)</td><td colspan="3"></td><td colspan="2">250,000 </td><td></td><td colspan="3"></td><td colspan="3">6.34%</td><td colspan="3"></td><td colspan="3">10/25</td><td colspan="3"></td><td colspan="3">S+206</td></tr><tr><td colspan="3">Unsecured term loan(2) </td><td colspan="3"></td><td colspan="2">150,000 </td><td></td><td colspan="3"></td><td colspan="3">5.12%</td><td colspan="3"></td><td colspan="3">07/25</td><td colspan="3"></td><td colspan="3">S+129</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">Index Strike Rate</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest rate caps:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">1290 Avenue of the Americas (70.0% interest)(3)</td><td colspan="3"></td><td>$</td><td>665,000 </td><td></td><td colspan="3"></td><td colspan="3">1.00%</td><td colspan="3"></td><td colspan="3">11/25</td><td colspan="3"></td><td colspan="3">S+162</td></tr><tr><td colspan="3">One Park Avenue (effective 3/24)</td><td colspan="3"></td><td colspan="2">525,000 </td><td></td><td colspan="3"></td><td colspan="3">3.89%</td><td colspan="3"></td><td colspan="3">03/25</td><td colspan="3"></td><td colspan="3">S+122</td></tr><tr><td colspan="3">640 Fifth Avenue (52.0% interest)</td><td colspan="3"></td><td colspan="2">259,925 </td><td></td><td colspan="3"></td><td colspan="3">4.00%</td><td colspan="3"></td><td colspan="3">05/24</td><td colspan="3"></td><td colspan="3">S+111</td></tr><tr><td colspan="3">731 Lexington Avenue office condominium (32.4% interest) </td><td colspan="3"></td><td colspan="2">162,000 </td><td></td><td colspan="3"></td><td colspan="3">6.00%</td><td colspan="3"></td><td colspan="3">06/24</td><td colspan="3"></td><td colspan="3">Prime + 0</td></tr><tr><td colspan="3">150 West 34th Street</td><td colspan="3"></td><td colspan="2">75,000 </td><td></td><td colspan="3"></td><td colspan="3">5.00%</td><td colspan="3"></td><td colspan="3">02/26</td><td colspan="3"></td><td colspan="3">S+215</td></tr><tr><td colspan="3">512 West 22nd Street (55.0% interest)</td><td colspan="3"></td><td colspan="2">71,088 </td><td></td><td colspan="3"></td><td colspan="3">4.50%</td><td colspan="3"></td><td colspan="3">06/25</td><td colspan="3"></td><td colspan="3">S+200</td></tr></table> ________________________ (1)The $500,000 mortgage loan is currently subject to a $500,000 interest rate swap with an all-in swapped rate of 2.22% and expires in March 2024. In January 2024, we entered into a forward swap arrangement for the remaining $250,000 balance of the $500,000 PENN 11 mortgage loan which is effective upon the March 2024 expiration of the current in-place swap. Together with the forward swap above, the loan will bear interest at an all-in swapped rate of 6.28% effective March 2024 through October 2025. (2)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. (3)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt in Part II, Item 8 of this Annual Report on Form 10-K for details. Leasing Activity For the Year Ended December 31, 2023 The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. •2,133,000 square feet of New York Office space (1,661,000 square feet at share) at an initial rent of $98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were $7.44 per square foot per annum, or 7.5% of initial rent. •299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of $118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were $21.90 per square foot per annum, or 18.5% of initial rent. •337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of $52.97 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were $11.44 per square foot per annum, or 21.6% of initial rent. •10,000 square feet at 555 California Street (7,000 square feet at share) at an initial rent of $134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $22.92 per square foot per annum, or 17.0% of initial rent. 40 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 41: Overview - continued Square footage (in service) and Occupancy as of December 31, 2023 <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Square feet in thousands)</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Square Feet (in service)</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Number ofproperties</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">TotalPortfolio</td><td colspan="3"></td><td colspan="3">OurShare</td><td colspan="3"></td><td colspan="3">Occupancy %</td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td colspan="3">30</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">18,699 </td><td></td><td colspan="3"></td><td colspan="2">16,001 </td><td></td><td colspan="3"></td><td colspan="2">90.7 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Retail (includes retail properties that are in the base of our office properties) </td><td colspan="3">50</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">2,123 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">74.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Residential - 1,974 units(2)</td><td colspan="3">5</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">1,479 </td><td></td><td colspan="3"></td><td colspan="2">745 </td><td></td><td colspan="3"></td><td colspan="2">96.8 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3">Alexander's</td><td colspan="3">5</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,331 </td><td></td><td colspan="3"></td><td colspan="2">755 </td><td></td><td colspan="3"></td><td colspan="2">92.6 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24,632 </td><td></td><td colspan="3"></td><td colspan="2">19,185 </td><td></td><td colspan="3"></td><td colspan="2">89.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">THE MART</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,688 </td><td></td><td colspan="3"></td><td colspan="2">3,679 </td><td></td><td colspan="3"></td><td colspan="2">79.2 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">1,274 </td><td></td><td colspan="3"></td><td colspan="2">94.5 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="3">11</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,044 </td><td></td><td colspan="3"></td><td colspan="2">6,155 </td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total square feet as of December 31, 2023</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="2">32,676 </td><td></td><td colspan="3"></td><td colspan="2">25,340 </td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr></table>________________________________________ See notes below. Square footage (in service) and Occupancy as of December 31, 2022 <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Square feet in thousands)</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Square Feet (in service)</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Number ofproperties</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">TotalPortfolio</td><td colspan="3"></td><td colspan="3">OurShare</td><td colspan="3"></td><td colspan="3">Occupancy %</td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td colspan="2">30 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">18,724 </td><td></td><td colspan="3"></td><td colspan="2">16,028 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Retail (includes retail properties that are in the base of our office properties)</td><td colspan="2">56 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">2,289 </td><td></td><td colspan="3"></td><td colspan="2">1,851 </td><td></td><td colspan="3"></td><td colspan="2">74.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Residential - 1,976 units(2)</td><td colspan="2">6 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">1,499 </td><td></td><td colspan="3"></td><td colspan="2">766 </td><td></td><td colspan="3"></td><td colspan="2">96.7 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,241 </td><td></td><td colspan="3"></td><td colspan="2">726 </td><td></td><td colspan="3"></td><td colspan="2">96.4 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24,753 </td><td></td><td colspan="3"></td><td colspan="2">19,371 </td><td></td><td colspan="3"></td><td colspan="2">90.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART</td><td colspan="3">4</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,635 </td><td></td><td colspan="3"></td><td colspan="2">3,626 </td><td></td><td colspan="3"></td><td colspan="2">81.6 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">94.7 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="3">11</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,532 </td><td></td><td colspan="3"></td><td colspan="2">1,197 </td><td></td><td colspan="3"></td><td colspan="2">92.6 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,986 </td><td></td><td colspan="3"></td><td colspan="2">6,096 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total square feet as of December 31, 2022</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">32,739 </td><td></td><td colspan="3"></td><td colspan="2">25,467 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>________________________________________ (1)Reflects the Office, Retail and Residential space within our 65 and 71 total New York properties as of December 31, 2023 and 2022, respectively. (2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy. 41 , VORNADO REALTY TRUST 10-K form for the fiscal year ended 2023-12-31, page 42: Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K. Acquisitions of Real Estate Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets). We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income. Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income. During the year ended December 31, 2023, we recognized an aggregate $95,465,000 of impairment losses directly attributable to decreases in the value of depreciable real estate held by certain wholly owned and partially owned entities, of which $22,176,000 was attributable to noncontrolling interests. See Note 5 - Investments in Partially Owned Entities and Note 15 - Fair Value Measurements to our consolidated financial statements in this Annual Report on Form 10-K for further details. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results. Collectability Assessments for Revenue Recognition We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income. Recent Accounting Pronouncements See Note 2 – Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements. 42
The following table sets forth these key operating statistics for the combined U.S. Malls and Premium Outlets: <table><tr><td></td><td>●</td><td>properties that are consolidated in our consolidated financial statements,</td></tr></table><table><tr><td></td><td>●</td><td>properties we account for under the equity method of accounting as joint ventures, and</td></tr></table><table><tr><td></td><td>●</td><td>the foregoing two categories of properties on a total portfolio basis.</td></tr></table> <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td><td>%/Basis Point</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">2023</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2022</td><td> </td><td>Change (1)</td><td> </td><td colspan="2">2021</td><td>​</td></tr><tr><td>U.S. Malls and Premium Outlets:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>​</td><td>95.7%</td><td>​</td><td>80 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>140 bps</td><td>​</td><td>​</td><td>93.5%</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>​</td><td>96.1%</td><td>​</td><td>120 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>180 bps</td><td>​</td><td>​</td><td>93.1%</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>​</td><td>95.8%</td><td>​</td><td>90 bps</td><td>​</td><td>​</td><td>94.9%</td><td>​</td><td>150 bps</td><td>​</td><td>​</td><td>93.4%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Consolidated</td><td>​</td><td>$</td><td> 55.47</td><td>​</td><td>2.8%</td><td>​</td><td>$</td><td> 53.95</td><td>​</td><td>2.6%</td><td>​</td><td>$</td><td> 52.59</td><td>​</td></tr><tr><td>Unconsolidated</td><td>​</td><td>$</td><td> 60.59</td><td>​</td><td>3.8%</td><td>​</td><td>$</td><td> 58.36</td><td>​</td><td>1.4%</td><td>​</td><td>$</td><td> 57.55</td><td>​</td></tr><tr><td>Total Portfolio</td><td>​</td><td>$</td><td> 56.82</td><td>​</td><td>3.1%</td><td>​</td><td>$</td><td> 55.13</td><td>​</td><td>2.3%</td><td>​</td><td>$</td><td> 53.91</td><td>​</td></tr><tr><td>U.S. TRG:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>95.7%</td><td>​</td><td>120 bps</td><td>​</td><td> </td><td>94.5%</td><td>​</td><td>330 bps</td><td>​</td><td> </td><td>91.2%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 65.01</td><td>​</td><td>5.3%</td><td>​</td><td>$</td><td> 61.76</td><td>​</td><td>5.2%</td><td>​</td><td>$</td><td> 58.69</td><td>​</td></tr><tr><td>The Mills:</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>Ending Occupancy</td><td>​</td><td> </td><td>97.8%</td><td>​</td><td>-40 bps</td><td>​</td><td> </td><td>98.2%</td><td>​</td><td>60 bps</td><td>​</td><td> </td><td>97.6%</td><td>​</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>$</td><td> 36.38</td><td>​</td><td>4.3%</td><td>​</td><td>$</td><td> 34.89</td><td>​</td><td>3.2%</td><td>​</td><td>$</td><td> 33.80</td><td>​</td></tr></table> <table><tr><td>(1)</td><td>Percentages may not recalculate due to rounding. Percentage and basis point changes are representative of the change from the comparable prior period.</td></tr></table> Ending Occupancy Levels and Average Base Minimum Rent per Square Foot. Ending occupancy is the percentage of gross leasable area, or GLA, which is leased as of the last day of the reporting period. We include all company owned space except for mall anchors, mall majors, mall freestanding and mall outlots in the calculation. Base minimum rent per square foot is the average base minimum rent charge in effect for the reporting period for all tenants that would qualify to be included in ending occupancy. Current Leasing Activities During the twelve months ended December 31, 2023, we signed 1,185 new leases and 1,841 renewal leases (excluding mall anchors and majors, new development, redevelopment and leases with terms of one year or less) with a fixed minimum rent across our U.S. Malls and Premium Outlets portfolio, comprising approximately 10.9 million square feet, of which 8.3 million square feet related to consolidated properties. During 2022, we signed 1,262 new leases and 1,517 renewal leases with a fixed minimum rent, comprising approximately 9.1 million square feet, of which 7.0 million square feet related to consolidated properties. The average annual initial base minimum rent for new leases was $66.39 per square foot in 2023 and $55.41 per square foot in 2022 with an average tenant allowance on new leases of $64.31 per square foot and $53.01 per square foot, respectively. Japan Data The following are selected key operating statistics for our Premium Outlets in Japan. The information used to prepare these statistics has been supplied by the managing venture partner. <table><tr><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td><td>​</td></tr><tr><td>​</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td><td> </td><td>%/basis point</td><td> </td><td colspan="2">December 31, </td></tr><tr><td>​</td><td>​</td><td colspan="2">2023</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2022</td><td>​</td><td>Change</td><td>​</td><td colspan="2">2021</td></tr><tr><td>Ending Occupancy</td><td>​</td><td>​</td><td>99.7%</td><td>​</td><td>-10 bps</td><td>​</td><td>​</td><td>99.8%</td><td>​</td><td>0 bps</td><td>​</td><td>​</td><td>99.8%</td></tr><tr><td>Average Base Minimum Rent per Square Foot</td><td>​</td><td>¥</td><td> 5,494</td><td>​</td><td>-4.93%</td><td>​</td><td>¥</td><td> 5,779</td><td>​</td><td>4.90%</td><td>​</td><td>¥</td><td> 5,509</td></tr></table> ​ 62 , Overview - continued Financings - continued Interest Rate Swap and Cap Arrangements We entered into the following interest rate swap and cap arrangements during the year ended December 31, 2023. See page 58, Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk - Derivatives and Hedging, in this Annual Report on Form 10-K for further information on our hedging instruments. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Amounts in thousands)</td><td colspan="3"></td><td colspan="3">Notional Amount(at share)</td><td colspan="3"></td><td colspan="3">All-In Swapped Rate</td><td colspan="3"></td><td colspan="3">Expiration Date</td><td colspan="3"></td><td colspan="3">Variable Rate Spread</td></tr><tr><td colspan="3">Interest rate swaps:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street (effective 05/24)</td><td colspan="3"></td><td>$</td><td>840,000 </td><td></td><td colspan="3"></td><td colspan="3">6.03%</td><td colspan="3"></td><td colspan="3">05/26</td><td colspan="3"></td><td colspan="3">S+205</td></tr><tr><td colspan="3">PENN 11 (effective 03/24)(1)</td><td colspan="3"></td><td colspan="2">250,000 </td><td></td><td colspan="3"></td><td colspan="3">6.34%</td><td colspan="3"></td><td colspan="3">10/25</td><td colspan="3"></td><td colspan="3">S+206</td></tr><tr><td colspan="3">Unsecured term loan(2) </td><td colspan="3"></td><td colspan="2">150,000 </td><td></td><td colspan="3"></td><td colspan="3">5.12%</td><td colspan="3"></td><td colspan="3">07/25</td><td colspan="3"></td><td colspan="3">S+129</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">Index Strike Rate</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest rate caps:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">1290 Avenue of the Americas (70.0% interest)(3)</td><td colspan="3"></td><td>$</td><td>665,000 </td><td></td><td colspan="3"></td><td colspan="3">1.00%</td><td colspan="3"></td><td colspan="3">11/25</td><td colspan="3"></td><td colspan="3">S+162</td></tr><tr><td colspan="3">One Park Avenue (effective 3/24)</td><td colspan="3"></td><td colspan="2">525,000 </td><td></td><td colspan="3"></td><td colspan="3">3.89%</td><td colspan="3"></td><td colspan="3">03/25</td><td colspan="3"></td><td colspan="3">S+122</td></tr><tr><td colspan="3">640 Fifth Avenue (52.0% interest)</td><td colspan="3"></td><td colspan="2">259,925 </td><td></td><td colspan="3"></td><td colspan="3">4.00%</td><td colspan="3"></td><td colspan="3">05/24</td><td colspan="3"></td><td colspan="3">S+111</td></tr><tr><td colspan="3">731 Lexington Avenue office condominium (32.4% interest) </td><td colspan="3"></td><td colspan="2">162,000 </td><td></td><td colspan="3"></td><td colspan="3">6.00%</td><td colspan="3"></td><td colspan="3">06/24</td><td colspan="3"></td><td colspan="3">Prime + 0</td></tr><tr><td colspan="3">150 West 34th Street</td><td colspan="3"></td><td colspan="2">75,000 </td><td></td><td colspan="3"></td><td colspan="3">5.00%</td><td colspan="3"></td><td colspan="3">02/26</td><td colspan="3"></td><td colspan="3">S+215</td></tr><tr><td colspan="3">512 West 22nd Street (55.0% interest)</td><td colspan="3"></td><td colspan="2">71,088 </td><td></td><td colspan="3"></td><td colspan="3">4.50%</td><td colspan="3"></td><td colspan="3">06/25</td><td colspan="3"></td><td colspan="3">S+200</td></tr></table> ________________________ (1)The $500,000 mortgage loan is currently subject to a $500,000 interest rate swap with an all-in swapped rate of 2.22% and expires in March 2024. In January 2024, we entered into a forward swap arrangement for the remaining $250,000 balance of the $500,000 PENN 11 mortgage loan which is effective upon the March 2024 expiration of the current in-place swap. Together with the forward swap above, the loan will bear interest at an all-in swapped rate of 6.28% effective March 2024 through October 2025. (2)In addition to the swap disclosed above, the unsecured term loan, which matures in December 2027, is subject to various interest rate swap arrangements that were entered into in prior periods. (3)In connection with the arrangement, we made a $63,100 up-front payment, of which $18,930 is attributable to noncontrolling interests. See Note 9 - Debt in Part II, Item 8 of this Annual Report on Form 10-K for details. Leasing Activity For the Year Ended December 31, 2023 The leasing activity and related statistics below are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Second generation relet space represents square footage that has not been vacant for more than nine months and tenant improvements and leasing commissions are based on our share of square feet leased during the period. •2,133,000 square feet of New York Office space (1,661,000 square feet at share) at an initial rent of $98.66 per square foot and a weighted average lease term of 10.0 years. The changes in the GAAP and cash mark-to-market rent on the 1,476,000 square feet of second generation space were positive 6.2% and negative 2.0%, respectively. Tenant improvements and leasing commissions were $7.44 per square foot per annum, or 7.5% of initial rent. •299,000 square feet of New York Retail space (239,000 square feet at share) at an initial rent of $118.47 per square foot and a weighted average lease term of 6.5 years. The changes in the GAAP and cash mark-to-market rent on the 131,000 square feet of second generation space were positive 20.7% and positive 18.8%, respectively. Tenant improvements and leasing commissions were $21.90 per square foot per annum, or 18.5% of initial rent. •337,000 square feet at THE MART (332,000 square feet at share) at an initial rent of $52.97 per square foot and a weighted average lease term of 7.2 years. The changes in the GAAP and cash mark-to-market rent on the 244,000 square feet of second generation space were negative 3.3% and negative 7.8%, respectively. Tenant improvements and leasing commissions were $11.44 per square foot per annum, or 21.6% of initial rent. •10,000 square feet at 555 California Street (7,000 square feet at share) at an initial rent of $134.70 per square foot and a weighted average lease term of 5.9 years. The changes in the GAAP and cash mark-to-market rent on the 4,000 square feet of second generation space were positive 12.8% and positive 2.4%, respectively. Tenant improvements and leasing commissions were $22.92 per square foot per annum, or 17.0% of initial rent. 40 , Overview - continued Square footage (in service) and Occupancy as of December 31, 2023 <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Square feet in thousands)</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Square Feet (in service)</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Number ofproperties</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">TotalPortfolio</td><td colspan="3"></td><td colspan="3">OurShare</td><td colspan="3"></td><td colspan="3">Occupancy %</td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td colspan="3">30</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">18,699 </td><td></td><td colspan="3"></td><td colspan="2">16,001 </td><td></td><td colspan="3"></td><td colspan="2">90.7 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Retail (includes retail properties that are in the base of our office properties) </td><td colspan="3">50</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">2,123 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">74.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Residential - 1,974 units(2)</td><td colspan="3">5</td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">1,479 </td><td></td><td colspan="3"></td><td colspan="2">745 </td><td></td><td colspan="3"></td><td colspan="2">96.8 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3">Alexander's</td><td colspan="3">5</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,331 </td><td></td><td colspan="3"></td><td colspan="2">755 </td><td></td><td colspan="3"></td><td colspan="2">92.6 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24,632 </td><td></td><td colspan="3"></td><td colspan="2">19,185 </td><td></td><td colspan="3"></td><td colspan="2">89.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">THE MART</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,688 </td><td></td><td colspan="3"></td><td colspan="2">3,679 </td><td></td><td colspan="3"></td><td colspan="2">79.2 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">1,274 </td><td></td><td colspan="3"></td><td colspan="2">94.5 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="3">11</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,044 </td><td></td><td colspan="3"></td><td colspan="2">6,155 </td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total square feet as of December 31, 2023</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="2">32,676 </td><td></td><td colspan="3"></td><td colspan="2">25,340 </td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr></table>________________________________________ See notes below. Square footage (in service) and Occupancy as of December 31, 2022 <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Square feet in thousands)</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Square Feet (in service)</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Number ofproperties</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">TotalPortfolio</td><td colspan="3"></td><td colspan="3">OurShare</td><td colspan="3"></td><td colspan="3">Occupancy %</td><td colspan="3"></td></tr><tr><td colspan="3">New York:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td></tr><tr><td colspan="3">Office</td><td colspan="2">30 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">18,724 </td><td></td><td colspan="3"></td><td colspan="2">16,028 </td><td></td><td colspan="3"></td><td colspan="2">91.9 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Retail (includes retail properties that are in the base of our office properties)</td><td colspan="2">56 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">2,289 </td><td></td><td colspan="3"></td><td colspan="2">1,851 </td><td></td><td colspan="3"></td><td colspan="2">74.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Residential - 1,976 units(2)</td><td colspan="2">6 </td><td></td><td colspan="3">(1)</td><td colspan="3"></td><td colspan="2">1,499 </td><td></td><td colspan="3"></td><td colspan="2">766 </td><td></td><td colspan="3"></td><td colspan="2">96.7 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3">Alexander's</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,241 </td><td></td><td colspan="3"></td><td colspan="2">726 </td><td></td><td colspan="3"></td><td colspan="2">96.4 </td><td>%</td><td colspan="3">(2)</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24,753 </td><td></td><td colspan="3"></td><td colspan="2">19,371 </td><td></td><td colspan="3"></td><td colspan="2">90.4 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">THE MART</td><td colspan="3">4</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,635 </td><td></td><td colspan="3"></td><td colspan="2">3,626 </td><td></td><td colspan="3"></td><td colspan="2">81.6 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">555 California Street</td><td colspan="3">3</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,819 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">94.7 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3">Other</td><td colspan="3">11</td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2,532 </td><td></td><td colspan="3"></td><td colspan="2">1,197 </td><td></td><td colspan="3"></td><td colspan="2">92.6 </td><td>%</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,986 </td><td></td><td colspan="3"></td><td colspan="2">6,096 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total square feet as of December 31, 2022</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">32,739 </td><td></td><td colspan="3"></td><td colspan="2">25,467 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>________________________________________ (1)Reflects the Office, Retail and Residential space within our 65 and 71 total New York properties as of December 31, 2023 and 2022, respectively. (2)The Alexander Apartment Tower (312 units) is reflected in Residential unit count and occupancy. 41 , Critical Accounting Estimates In preparing the consolidated financial statements we have made estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Accounting estimates are deemed critical if they involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Below is a summary of the critical accounting estimates used in the preparation of our consolidated financial statements. A discussion of our accounting policies is included in Note 2 - Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K. Acquisitions of Real Estate Upon the acquisition of real estate, we assess whether the transaction should be accounted for as an asset acquisition or as a business combination. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. Our acquisitions of real estate generally will not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e. land, buildings, and related identified intangible assets). We assess the fair value of acquired assets (including land, buildings and improvements, identified intangibles, such as acquired above and below-market leases, acquired in-place leases and tenant relationships) and acquired liabilities and we allocate the purchase price on a relative fair value basis. We assess fair value based on estimated cash flow projections based on a number of factors such as historical operating results, known trends, and market/economic conditions and make key assumptions regarding the discount and capitalization rates used in our analyses. The use of different assumptions to value the acquired properties and allocate value between land and building could affect the revenues recognized over the terms of the leases at our properties and the expenses recognized over the property's estimated remaining useful life on our consolidated statements of income. Impairment Analyses for Investments in Real Estate and Unconsolidated Partially Owned Entities Our investments in consolidated properties, including any related right-of-use assets and intangible assets, and unconsolidated partially owned entities are individually reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our unconsolidated partially owned entities, we consider various qualitative factors to determine if a decrease in the value of our investment is other-than-temporary during our intended holding period. Assessing impairment can be complex and involves a high degree of subjectivity in determining if impairment indicators are present and in estimating the future undiscounted cash flows or the fair value of an asset. In particular, these estimates are sensitive to significant assumptions, including the estimation of future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates and our intent and ability to hold the related asset, all of which could be affected by our expectations about future market or economic conditions. These estimates can have a significant impact on the undiscounted cash flows or estimated fair value of an asset and could thereby affect the value of our real estate investments on our consolidated balance sheets as well as any potential impairment losses recognized on our consolidated statements of income. During the year ended December 31, 2023, we recognized an aggregate $95,465,000 of impairment losses directly attributable to decreases in the value of depreciable real estate held by certain wholly owned and partially owned entities, of which $22,176,000 was attributable to noncontrolling interests. See Note 5 - Investments in Partially Owned Entities and Note 15 - Fair Value Measurements to our consolidated financial statements in this Annual Report on Form 10-K for further details. Impairment analyses are based on information available at the time the analyses are prepared. Estimates of future cash flows are subjective and are based, in part, on assumptions regarding future rental revenues, operating expenses, capital expenditures, discount rates and capitalization rates which could differ materially from actual results. Collectability Assessments for Revenue Recognition We evaluate on an individual lease basis whether it is probable that we will collect substantially all amounts due from our tenants and recognize changes in the collectability assessment of our operating leases as adjustments to rental revenue. Management exercises judgment in assessing collectability of tenant receivables and considers payment history, current credit status, publicly available information about the financial condition of the tenant, and other factors. Our assessment of the collectability of tenant receivables can have a significant impact on the rental revenue recognized in our consolidated statements of income. Recent Accounting Pronouncements See Note 2 – Basis of Presentation and Significant Accounting Policies to our consolidated financial statements in this Annual Report on Form 10-K for a discussion concerning recent accounting pronouncements. 42
q_com069
Compare the goodwill and intangible assets of General Mills and The Procter & Gamble Company for the fiscal year 2023.
General Mills reported goodwill of $14,511.2 million and other intangible assets totaling $6,967.6 million for the fiscal year 2023. The intangible assets include brands and other indefinite-lived intangibles valued at $6,712.4 million and customer relationships and other finite-lived intangibles valued at $255.2 million after accumulated amortization. The Procter & Gamble Company reported goodwill of $40,659 million and intangible assets totaling $30,039 million for the fiscal year 2023. The intangible assets include brands with indefinite lives valued at $20,992 million and other intangible assets with determinable lives valued at $9,047 million, with accumulated amortization of $6,256 million. P&G's goodwill and intangible assets are significantly higher than those of General Mills, reflecting P&G's larger scale and extensive brand portfolio. This substantial difference in intangible assets indicates P&G's strong market presence and brand equity.
Comparison
53, 54;45, 46
0001193125-23-177500;0000080424-23-000073
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 53: 53 Joint venture earnings and cash flow activity is as follows: Fiscal Year In Millions 2023 2022 2021 Sales to joint ventures $ 5.8 $ 6.3 $ 6.7 Net advances (repayments) 32.2 (15.4) (15.5) Dividends received 69.9 107.5 95.2 Summary combined financial information for the joint ventures on a 100 percent basis is as follows: Fiscal Year In Millions 2023 2022 2021 Net sales: CPW $ 1,618.9 $ 1,706.5 $ 1,766.8 HDJ 338.5 427.8 422.4 Total net sales 1,957.4 2,134.3 2,189.2 Gross margin 667.7 803.1 882.9 Earnings before income taxes 169.3 249.9 247.8 Earnings after income taxes 126.9 201.0 201.7 In Millions May 28, 2023 May 29, 2022 Current assets $ 817.7 $ 823.9 Noncurrent assets 772.7 839.8 Current liabilities 1,300.0 1,298.8 Noncurrent liabilities 100.3 106.5 NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets are as follows: In Millions May 28, 2023 May 29, 2022 Goodwill $ 14,511.2 $ 14,378.5 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 6,712.4 6,725.8 Intangible assets subject to amortization: Customer relationships and other finite-lived intangibles 386.3 400.3 Less accumulated amortization (131.1) (126.2) Intangible assets subject to amortization 255.2 274.1 Other intangible assets 6,967.6 6,999.9 Total $ 21,478.8 $ 21,378.4 Based on the carrying value of finite-lived intangible assets as of May 28, 2023, amortization expense for each of the next five fiscal years is estimated to be approximately $ 20 million. , GENERAL MILLS INC 10-K form, page 54: 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 45: The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: | | | | | | | | | | | | |---:|:-------------------------------------|:------------|:--------------------|:------|:------|:------|:------|:----|:---|:----| | 1 | | Separations | Asset-Related Costs | Other | Total | | | | | | | 2 | RESERVE JUNE 30, 2021 | $ | 176 | | $ | - | $ | 102 | $ | 278 | | 3 | Cost incurred and charged to expense | 88 | | 87 | | 78 | 253 | | | | | 4 | Cost paid/settled | (143) | | (87) | | (154) | (384) | | | | | 5 | RESERVE JUNE 30, 2022 | 121 | | - | | 26 | 147 | | | | | 6 | Cost incurred and charged to expense | 175 | | 43 | | 111 | 329 | | | | | 7 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | | | 8 | RESERVE JUNE 30, 2023 | $ | 155 | | $ | - | $ | 19 | $ | 174 | Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: | | | | | | | | | | |---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | 2022 | 2021 | | | | | | 2 | Beauty | $ | 15 | | $ | 11 | $ | 13 | | 3 | Grooming | 17 | | 14 | | 25 | | | | 4 | Health Care | 28 | | 32 | | 51 | | | | 5 | Fabric & Home Care | 87 | | 42 | | 22 | | | | 6 | Baby, Feminine & Family Care | 21 | | 83 | | 29 | | | | 7 | Corporate (1) | 161 | | 71 | | 190 | | | | 8 | Total Company | $ | 329 | | $ | 253 | $ | 330 | (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------|:-------|:---------|:------------|:-------------------|:-----------------------------|:--------------|:------|:------|:------|:---|:--------|:---|:------|:---|:-------| | 1 | | Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | | | | | | | | | | | 2 | Balance at June 30, 2021 - Net (1) | $ | 13,257 | | $ | 13,095 | | $ | 8,046 | | $ | 1,873 | $ | 4,653 | $ | 40,924 | | 3 | Acquisitions and divestitures | 781 | | - | | 1 | | - | | - | | 782 | | | | | | 4 | Translation and other | (742) | | (524) | | (458) | | (65) | | (217) | | (2,006) | | | | | | 5 | Balance at June 30, 2022 - Net (1) | 13,296 | | 12,571 | | 7,589 | | 1,808 | | 4,436 | | 39,700 | | | | | | 6 | Acquisitions and divestitures | 405 | | - | | - | | - | | 33 | | 438 | | | | | | 7 | Translation and other | 187 | | 132 | | 129 | | 13 | | 60 | | 521 | | | | | | 8 | Balance at June 30, 2023 - Net (1) | $ | 13,888 | | $ | 12,703 | | $ | 7,718 | | $ | 1,821 | $ | 4,529 | $ | 40,659 | (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 46: 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: | | | | | | | | | | | | | |---:|:------------------------------------------|:----------------------|:------------------------|:--------|:----------------------|:------------------------|:-------|:--------|:-------|:---|:--------| | 1 | | 2023 | | 2022 | | | | | | | | | 2 | As of June 30 | Gross Carrying Amount | AccumulatedAmortization | | Gross Carrying Amount | AccumulatedAmortization | | | | | | | 3 | INTANGIBLE ASSETS WITH DETERMINABLE LIVES | | | | | | | | | | | | 4 | Brands | $ | 4,352 | | $ | (2,540) | | $ | 4,299 | $ | (2,628) | | 5 | Patents and technology | 2,775 | | (2,649) | | | 2,769 | (2,609) | | | | | 6 | Customer relationships | 1,847 | | (1,039) | | | 1,797 | (939) | | | | | 7 | Other | 73 | | (28) | | | 147 | (97) | | | | | 8 | TOTAL | $ | 9,047 | | $ | (6,256) | | $ | 9,012 | $ | (6,273) | | 10 | INTANGIBLE ASSETS WITH INDEFINITE LIVES | | | | | | | | | | | | 11 | Brands | 20,992 | | - | | | 20,940 | - | | | | | 13 | TOTAL INTANGIBLE ASSETS | $ | 30,039 | | $ | (6,256) | | $ | 29,952 | $ | (6,273) | Amortization expense of intangible assets was as follows: | | | | | | | | | | |---:|:------------------------------|:-----|:----|:-----|:-----|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | 2021 | | | | | 2 | Intangible asset amortization | $ | 327 | | $ | 312 | $ | 318 | Estimated amortization expense over the next five fiscal years is as follows: | | | | | | | | | | | | | | |---:|:-------------------------------|:-----|-----:|:-----|:-----|-----:|:---|:----|:---|:----|:---|:----| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | | | | | | | 2 | Estimated amortization expense | $ | 340 | | $ | 320 | $ | 297 | $ | 287 | $ | 247 | NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: | | | | | | | | | | | | |---:|:---------------------------|:------|:-------|:-----|:------|:-----|:-------|:------|:---|:-------| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | United States | $ | 12,107 | | | $ | 11,698 | | $ | 10,858 | | 3 | International | 6,246 | | | 6,297 | | | 6,757 | | | | 4 | TOTAL | $ | 18,353 | | | $ | 17,995 | | $ | 17,615 | Amounts in millions of dollars except per share amounts or as otherwise specified.
53 Joint venture earnings and cash flow activity is as follows: Fiscal Year In Millions 2023 2022 2021 Sales to joint ventures $ 5.8 $ 6.3 $ 6.7 Net advances (repayments) 32.2 (15.4) (15.5) Dividends received 69.9 107.5 95.2 Summary combined financial information for the joint ventures on a 100 percent basis is as follows: Fiscal Year In Millions 2023 2022 2021 Net sales: CPW $ 1,618.9 $ 1,706.5 $ 1,766.8 HDJ 338.5 427.8 422.4 Total net sales 1,957.4 2,134.3 2,189.2 Gross margin 667.7 803.1 882.9 Earnings before income taxes 169.3 249.9 247.8 Earnings after income taxes 126.9 201.0 201.7 In Millions May 28, 2023 May 29, 2022 Current assets $ 817.7 $ 823.9 Noncurrent assets 772.7 839.8 Current liabilities 1,300.0 1,298.8 Noncurrent liabilities 100.3 106.5 NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets are as follows: In Millions May 28, 2023 May 29, 2022 Goodwill $ 14,511.2 $ 14,378.5 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 6,712.4 6,725.8 Intangible assets subject to amortization: Customer relationships and other finite-lived intangibles 386.3 400.3 Less accumulated amortization (131.1) (126.2) Intangible assets subject to amortization 255.2 274.1 Other intangible assets 6,967.6 6,999.9 Total $ 21,478.8 $ 21,378.4 Based on the carrying value of finite-lived intangible assets as of May 28, 2023, amortization expense for each of the next five fiscal years is estimated to be approximately $ 20 million. , 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: | | | | | | | | | | | | |---:|:-------------------------------------|:------------|:--------------------|:------|:------|:------|:------|:----|:---|:----| | 1 | | Separations | Asset-Related Costs | Other | Total | | | | | | | 2 | RESERVE JUNE 30, 2021 | $ | 176 | | $ | - | $ | 102 | $ | 278 | | 3 | Cost incurred and charged to expense | 88 | | 87 | | 78 | 253 | | | | | 4 | Cost paid/settled | (143) | | (87) | | (154) | (384) | | | | | 5 | RESERVE JUNE 30, 2022 | 121 | | - | | 26 | 147 | | | | | 6 | Cost incurred and charged to expense | 175 | | 43 | | 111 | 329 | | | | | 7 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | | | 8 | RESERVE JUNE 30, 2023 | $ | 155 | | $ | - | $ | 19 | $ | 174 | Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: | | | | | | | | | | |---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | 2022 | 2021 | | | | | | 2 | Beauty | $ | 15 | | $ | 11 | $ | 13 | | 3 | Grooming | 17 | | 14 | | 25 | | | | 4 | Health Care | 28 | | 32 | | 51 | | | | 5 | Fabric & Home Care | 87 | | 42 | | 22 | | | | 6 | Baby, Feminine & Family Care | 21 | | 83 | | 29 | | | | 7 | Corporate (1) | 161 | | 71 | | 190 | | | | 8 | Total Company | $ | 329 | | $ | 253 | $ | 330 | (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------|:-------|:---------|:------------|:-------------------|:-----------------------------|:--------------|:------|:------|:------|:---|:--------|:---|:------|:---|:-------| | 1 | | Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | | | | | | | | | | | 2 | Balance at June 30, 2021 - Net (1) | $ | 13,257 | | $ | 13,095 | | $ | 8,046 | | $ | 1,873 | $ | 4,653 | $ | 40,924 | | 3 | Acquisitions and divestitures | 781 | | - | | 1 | | - | | - | | 782 | | | | | | 4 | Translation and other | (742) | | (524) | | (458) | | (65) | | (217) | | (2,006) | | | | | | 5 | Balance at June 30, 2022 - Net (1) | 13,296 | | 12,571 | | 7,589 | | 1,808 | | 4,436 | | 39,700 | | | | | | 6 | Acquisitions and divestitures | 405 | | - | | - | | - | | 33 | | 438 | | | | | | 7 | Translation and other | 187 | | 132 | | 129 | | 13 | | 60 | | 521 | | | | | | 8 | Balance at June 30, 2023 - Net (1) | $ | 13,888 | | $ | 12,703 | | $ | 7,718 | | $ | 1,821 | $ | 4,529 | $ | 40,659 | (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: | | | | | | | | | | | | | |---:|:------------------------------------------|:----------------------|:------------------------|:--------|:----------------------|:------------------------|:-------|:--------|:-------|:---|:--------| | 1 | | 2023 | | 2022 | | | | | | | | | 2 | As of June 30 | Gross Carrying Amount | AccumulatedAmortization | | Gross Carrying Amount | AccumulatedAmortization | | | | | | | 3 | INTANGIBLE ASSETS WITH DETERMINABLE LIVES | | | | | | | | | | | | 4 | Brands | $ | 4,352 | | $ | (2,540) | | $ | 4,299 | $ | (2,628) | | 5 | Patents and technology | 2,775 | | (2,649) | | | 2,769 | (2,609) | | | | | 6 | Customer relationships | 1,847 | | (1,039) | | | 1,797 | (939) | | | | | 7 | Other | 73 | | (28) | | | 147 | (97) | | | | | 8 | TOTAL | $ | 9,047 | | $ | (6,256) | | $ | 9,012 | $ | (6,273) | | 10 | INTANGIBLE ASSETS WITH INDEFINITE LIVES | | | | | | | | | | | | 11 | Brands | 20,992 | | - | | | 20,940 | - | | | | | 13 | TOTAL INTANGIBLE ASSETS | $ | 30,039 | | $ | (6,256) | | $ | 29,952 | $ | (6,273) | Amortization expense of intangible assets was as follows: | | | | | | | | | | |---:|:------------------------------|:-----|:----|:-----|:-----|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | 2021 | | | | | 2 | Intangible asset amortization | $ | 327 | | $ | 312 | $ | 318 | Estimated amortization expense over the next five fiscal years is as follows: | | | | | | | | | | | | | | |---:|:-------------------------------|:-----|-----:|:-----|:-----|-----:|:---|:----|:---|:----|:---|:----| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | | | | | | | 2 | Estimated amortization expense | $ | 340 | | $ | 320 | $ | 297 | $ | 287 | $ | 247 | NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: | | | | | | | | | | | | |---:|:---------------------------|:------|:-------|:-----|:------|:-----|:-------|:------|:---|:-------| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | United States | $ | 12,107 | | | $ | 11,698 | | $ | 10,858 | | 3 | International | 6,246 | | | 6,297 | | | 6,757 | | | | 4 | TOTAL | $ | 18,353 | | | $ | 17,995 | | $ | 17,615 | Amounts in millions of dollars except per share amounts or as otherwise specified.
GENERAL MILLS INC 10-K form, page 53: 53 Joint venture earnings and cash flow activity is as follows: Fiscal Year In Millions 2023 2022 2021 Sales to joint ventures $ 5.8 $ 6.3 $ 6.7 Net advances (repayments) 32.2 (15.4) (15.5) Dividends received 69.9 107.5 95.2 Summary combined financial information for the joint ventures on a 100 percent basis is as follows: Fiscal Year In Millions 2023 2022 2021 Net sales: CPW $ 1,618.9 $ 1,706.5 $ 1,766.8 HDJ 338.5 427.8 422.4 Total net sales 1,957.4 2,134.3 2,189.2 Gross margin 667.7 803.1 882.9 Earnings before income taxes 169.3 249.9 247.8 Earnings after income taxes 126.9 201.0 201.7 In Millions May 28, 2023 May 29, 2022 Current assets $ 817.7 $ 823.9 Noncurrent assets 772.7 839.8 Current liabilities 1,300.0 1,298.8 Noncurrent liabilities 100.3 106.5 NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets are as follows: In Millions May 28, 2023 May 29, 2022 Goodwill $ 14,511.2 $ 14,378.5 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 6,712.4 6,725.8 Intangible assets subject to amortization: Customer relationships and other finite-lived intangibles 386.3 400.3 Less accumulated amortization (131.1) (126.2) Intangible assets subject to amortization 255.2 274.1 Other intangible assets 6,967.6 6,999.9 Total $ 21,478.8 $ 21,378.4 Based on the carrying value of finite-lived intangible assets as of May 28, 2023, amortization expense for each of the next five fiscal years is estimated to be approximately $ 20 million. , GENERAL MILLS INC 10-K form, page 54: 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 45: The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separations</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2021</td><td>$</td><td>176 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>102 </td><td></td><td>$</td><td>278 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">88 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">78 </td><td></td><td colspan="2">253 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(143)</td><td></td><td colspan="2">(87)</td><td></td><td colspan="2">(154)</td><td></td><td colspan="2">(384)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td colspan="2">121 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">26 </td><td></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td>$</td><td>155 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>19 </td><td></td><td>$</td><td>174 </td><td></td></tr></table>Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3">2022</td><td colspan="3">2021</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td><td>$</td><td>13 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td><td colspan="2">25 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td><td colspan="2">51 </td><td></td></tr><tr><td colspan="3">Fabric &amp; Home Care</td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">22 </td><td></td></tr><tr><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td><td colspan="2">29 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td><td colspan="2">190 </td><td></td></tr><tr><td colspan="3">Total Company</td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td><td>$</td><td>330 </td><td></td></tr></table> (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Beauty</td><td colspan="3">Grooming</td><td colspan="3">Health Care</td><td colspan="3">Fabric &amp; Home Care</td><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="3">Total Company</td></tr><tr><td colspan="3">Balance at June 30, 2021 - Net (1)</td><td>$</td><td>13,257 </td><td></td><td>$</td><td>13,095 </td><td></td><td>$</td><td>8,046 </td><td></td><td>$</td><td>1,873 </td><td></td><td>$</td><td>4,653 </td><td></td><td>$</td><td>40,924 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">781 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">1 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">782 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">(742)</td><td></td><td colspan="2">(524)</td><td></td><td colspan="2">(458)</td><td></td><td colspan="2">(65)</td><td></td><td colspan="2">(217)</td><td></td><td colspan="2">(2,006)</td><td></td></tr><tr><td colspan="3">Balance at June 30, 2022 - Net (1)</td><td colspan="2">13,296 </td><td></td><td colspan="2">12,571 </td><td></td><td colspan="2">7,589 </td><td></td><td colspan="2">1,808 </td><td></td><td colspan="2">4,436 </td><td></td><td colspan="2">39,700 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">405 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">33 </td><td></td><td colspan="2">438 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">187 </td><td></td><td colspan="2">132 </td><td></td><td colspan="2">129 </td><td></td><td colspan="2">13 </td><td></td><td colspan="2">60 </td><td></td><td colspan="2">521 </td><td></td></tr><tr><td colspan="3">Balance at June 30, 2023 - Net (1)</td><td>$</td><td>13,888 </td><td></td><td>$</td><td>12,703 </td><td></td><td>$</td><td>7,718 </td><td></td><td>$</td><td>1,821 </td><td></td><td>$</td><td>4,529 </td><td></td><td>$</td><td>40,659 </td><td></td></tr></table> (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 46: 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">2023</td><td colspan="3"></td><td colspan="6">2022</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td><td colspan="3"></td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH DETERMINABLE LIVES</td></tr><tr><td colspan="3">Brands</td><td>$</td><td>4,352 </td><td></td><td>$</td><td>(2,540)</td><td></td><td colspan="3"></td><td>$</td><td>4,299 </td><td></td><td>$</td><td>(2,628)</td><td></td></tr><tr><td colspan="3">Patents and technology</td><td colspan="2">2,775 </td><td></td><td colspan="2">(2,649)</td><td></td><td colspan="3"></td><td colspan="2">2,769 </td><td></td><td colspan="2">(2,609)</td><td></td></tr><tr><td colspan="3">Customer relationships</td><td colspan="2">1,847 </td><td></td><td colspan="2">(1,039)</td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td><td colspan="2">(939)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">73 </td><td></td><td colspan="2">(28)</td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td><td colspan="2">(97)</td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>9,047 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>9,012 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH INDEFINITE LIVES</td></tr><tr><td colspan="3">Brands</td><td colspan="2">20,992 </td><td></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">20,940 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL INTANGIBLE ASSETS</td><td>$</td><td>30,039 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>29,952 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr></table>Amortization expense of intangible assets was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Intangible asset amortization</td><td>$</td><td>327 </td><td></td><td colspan="3"></td><td>$</td><td>312 </td><td></td><td colspan="3"></td><td>$</td><td>318 </td><td></td></tr></table>Estimated amortization expense over the next five fiscal years is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Estimated amortization expense</td><td>$</td><td>340 </td><td></td><td>$</td><td>320 </td><td></td><td>$</td><td>297 </td><td></td><td>$</td><td>287 </td><td></td><td>$</td><td>247 </td><td></td></tr></table> NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">United States</td><td>$</td><td>12,107 </td><td></td><td colspan="3"></td><td>$</td><td>11,698 </td><td></td><td colspan="3"></td><td>$</td><td>10,858 </td><td></td></tr><tr><td colspan="3">International</td><td colspan="2">6,246 </td><td></td><td colspan="3"></td><td colspan="2">6,297 </td><td></td><td colspan="3"></td><td colspan="2">6,757 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>18,353 </td><td></td><td colspan="3"></td><td>$</td><td>17,995 </td><td></td><td colspan="3"></td><td>$</td><td>17,615 </td><td></td></tr></table>Amounts in millions of dollars except per share amounts or as otherwise specified.
53 Joint venture earnings and cash flow activity is as follows: Fiscal Year In Millions 2023 2022 2021 Sales to joint ventures $ 5.8 $ 6.3 $ 6.7 Net advances (repayments) 32.2 (15.4) (15.5) Dividends received 69.9 107.5 95.2 Summary combined financial information for the joint ventures on a 100 percent basis is as follows: Fiscal Year In Millions 2023 2022 2021 Net sales: CPW $ 1,618.9 $ 1,706.5 $ 1,766.8 HDJ 338.5 427.8 422.4 Total net sales 1,957.4 2,134.3 2,189.2 Gross margin 667.7 803.1 882.9 Earnings before income taxes 169.3 249.9 247.8 Earnings after income taxes 126.9 201.0 201.7 In Millions May 28, 2023 May 29, 2022 Current assets $ 817.7 $ 823.9 Noncurrent assets 772.7 839.8 Current liabilities 1,300.0 1,298.8 Noncurrent liabilities 100.3 106.5 NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS The components of goodwill and other intangible assets are as follows: In Millions May 28, 2023 May 29, 2022 Goodwill $ 14,511.2 $ 14,378.5 Other intangible assets: Intangible assets not subject to amortization: Brands and other indefinite-lived intangibles 6,712.4 6,725.8 Intangible assets subject to amortization: Customer relationships and other finite-lived intangibles 386.3 400.3 Less accumulated amortization (131.1) (126.2) Intangible assets subject to amortization 255.2 274.1 Other intangible assets 6,967.6 6,999.9 Total $ 21,478.8 $ 21,378.4 Based on the carrying value of finite-lived intangible assets as of May 28, 2023, amortization expense for each of the next five fiscal years is estimated to be approximately $ 20 million. , 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separations</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2021</td><td>$</td><td>176 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>102 </td><td></td><td>$</td><td>278 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">88 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">78 </td><td></td><td colspan="2">253 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(143)</td><td></td><td colspan="2">(87)</td><td></td><td colspan="2">(154)</td><td></td><td colspan="2">(384)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td colspan="2">121 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">26 </td><td></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td>$</td><td>155 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>19 </td><td></td><td>$</td><td>174 </td><td></td></tr></table>Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3">2022</td><td colspan="3">2021</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td><td>$</td><td>13 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td><td colspan="2">25 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td><td colspan="2">51 </td><td></td></tr><tr><td colspan="3">Fabric &amp; Home Care</td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">22 </td><td></td></tr><tr><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td><td colspan="2">29 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td><td colspan="2">190 </td><td></td></tr><tr><td colspan="3">Total Company</td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td><td>$</td><td>330 </td><td></td></tr></table> (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Beauty</td><td colspan="3">Grooming</td><td colspan="3">Health Care</td><td colspan="3">Fabric &amp; Home Care</td><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="3">Total Company</td></tr><tr><td colspan="3">Balance at June 30, 2021 - Net (1)</td><td>$</td><td>13,257 </td><td></td><td>$</td><td>13,095 </td><td></td><td>$</td><td>8,046 </td><td></td><td>$</td><td>1,873 </td><td></td><td>$</td><td>4,653 </td><td></td><td>$</td><td>40,924 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">781 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">1 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">782 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">(742)</td><td></td><td colspan="2">(524)</td><td></td><td colspan="2">(458)</td><td></td><td colspan="2">(65)</td><td></td><td colspan="2">(217)</td><td></td><td colspan="2">(2,006)</td><td></td></tr><tr><td colspan="3">Balance at June 30, 2022 - Net (1)</td><td colspan="2">13,296 </td><td></td><td colspan="2">12,571 </td><td></td><td colspan="2">7,589 </td><td></td><td colspan="2">1,808 </td><td></td><td colspan="2">4,436 </td><td></td><td colspan="2">39,700 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">405 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">33 </td><td></td><td colspan="2">438 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">187 </td><td></td><td colspan="2">132 </td><td></td><td colspan="2">129 </td><td></td><td colspan="2">13 </td><td></td><td colspan="2">60 </td><td></td><td colspan="2">521 </td><td></td></tr><tr><td colspan="3">Balance at June 30, 2023 - Net (1)</td><td>$</td><td>13,888 </td><td></td><td>$</td><td>12,703 </td><td></td><td>$</td><td>7,718 </td><td></td><td>$</td><td>1,821 </td><td></td><td>$</td><td>4,529 </td><td></td><td>$</td><td>40,659 </td><td></td></tr></table> (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">2023</td><td colspan="3"></td><td colspan="6">2022</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td><td colspan="3"></td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH DETERMINABLE LIVES</td></tr><tr><td colspan="3">Brands</td><td>$</td><td>4,352 </td><td></td><td>$</td><td>(2,540)</td><td></td><td colspan="3"></td><td>$</td><td>4,299 </td><td></td><td>$</td><td>(2,628)</td><td></td></tr><tr><td colspan="3">Patents and technology</td><td colspan="2">2,775 </td><td></td><td colspan="2">(2,649)</td><td></td><td colspan="3"></td><td colspan="2">2,769 </td><td></td><td colspan="2">(2,609)</td><td></td></tr><tr><td colspan="3">Customer relationships</td><td colspan="2">1,847 </td><td></td><td colspan="2">(1,039)</td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td><td colspan="2">(939)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">73 </td><td></td><td colspan="2">(28)</td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td><td colspan="2">(97)</td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>9,047 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>9,012 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH INDEFINITE LIVES</td></tr><tr><td colspan="3">Brands</td><td colspan="2">20,992 </td><td></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">20,940 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL INTANGIBLE ASSETS</td><td>$</td><td>30,039 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>29,952 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr></table>Amortization expense of intangible assets was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Intangible asset amortization</td><td>$</td><td>327 </td><td></td><td colspan="3"></td><td>$</td><td>312 </td><td></td><td colspan="3"></td><td>$</td><td>318 </td><td></td></tr></table>Estimated amortization expense over the next five fiscal years is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Estimated amortization expense</td><td>$</td><td>340 </td><td></td><td>$</td><td>320 </td><td></td><td>$</td><td>297 </td><td></td><td>$</td><td>287 </td><td></td><td>$</td><td>247 </td><td></td></tr></table> NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">United States</td><td>$</td><td>12,107 </td><td></td><td colspan="3"></td><td>$</td><td>11,698 </td><td></td><td colspan="3"></td><td>$</td><td>10,858 </td><td></td></tr><tr><td colspan="3">International</td><td colspan="2">6,246 </td><td></td><td colspan="3"></td><td colspan="2">6,297 </td><td></td><td colspan="3"></td><td colspan="2">6,757 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>18,353 </td><td></td><td colspan="3"></td><td>$</td><td>17,995 </td><td></td><td colspan="3"></td><td>$</td><td>17,615 </td><td></td></tr></table>Amounts in millions of dollars except per share amounts or as otherwise specified.
q_com070
Compare the risk management instruments used by General Mills and The Procter & Gamble Company, focusing on forex risk, interest rate risk, and other financial instruments for the fiscal year 2023.
General Mills uses various derivative instruments to manage commodity price risk, interest rate risk, and foreign exchange risk. The company reported a net notional value of commodity derivatives of $406.8 million, interest rate swaps to manage exposure to interest rate changes, and foreign exchange derivatives with a net notional value of $933.0 million. The company also hedges net investments in foreign subsidiaries using euro-denominated bonds and foreign exchange forward contracts. The Procter & Gamble Company also uses derivative instruments to manage interest rate risk, foreign currency risk, and net investment hedging. P&G reported interest rate contracts with a notional amount of $4,044 million, foreign currency interest rate contracts with a notional amount of $11,005 million, and foreign currency contracts with a notional amount of $3,489 million. P&G's net investment hedges include foreign currency swaps and foreign currency-denominated debt instruments. Both companies actively manage financial risks using derivatives, but P&G has a larger notional amount of derivatives, reflecting its larger scale and more extensive global operations.
Comparison
55, 56, 57, 58, 59;56, 57, 58 ,59
0001193125-23-177500;0000080424-23-000073
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 55: 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , GENERAL MILLS INC 10-K form, page 56: 56 There were no realized gains or losses from sales of marketable securities in fiscal 2023 and 2022. Gains and losses are determined by specific identification. Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security's maturity date. The aggregate unrealized gains and losses on available for sale debt securities, net of tax effects, are classified in AOCI within stockholders' equity. Scheduled maturities of our marketable securities are as follows: Marketable Securities In Millions Cost Fair Value Under 1 year (current) $ 2.3 $ 2.3 Equity securities 117.5 122.7 Total $ 119.8 $ 125.0 As of May 28, 2023, we had $ 2.2 million of marketable debt securities pledged as collateral for derivative contracts. RISK MANAGEMENT ACTIVITIES As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices. To manage these risks, we may enter into various derivative transactions (e.g., futures, options, and swaps) pursuant to our established policies. COMMODITY PRICE RISK Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close as possible to or below our planned cost. We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. Unallocated corporate items for fiscal 2023, 2022, and 2021 included: Fiscal Year In Millions 2023 2022 2021 Net (loss) gain on mark-to-market valuation of commodity positions $ (154.4) $ 303.3 $ 138.2 Net gain on commodity positions reclassified from unallocated corporate items to segment operating profit (89.5) (188.0) (8.8) Net mark-to-market revaluation of certain grain inventories (48.0) 17.8 9.4 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (291.9) $ 133.1 $ 138.8 , GENERAL MILLS INC 10-K form, page 57: 57 As of May 28, 2023, the net notional value of commodity derivatives was $ 406.8 million, of which $ 257.9 million related to agricultural inputs and $ 148.9 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. INTEREST RATE RISK We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. Primary exposures include U.S. Treasury rates, SOFR, Euribor, and commercial paper rates in the United States and Europe. We use interest rate swaps, forward-starting interest rate swaps, and treasury locks to hedge our exposure to interest rate changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt, based on current and projected market conditions. Generally under these swaps, we agree with a counterparty to exchange the difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount. Floating Interest Rate Exposures - Floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated debt. Fixed Interest Rate Exposures - Fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness assessed based on changes in the fair value of the underlying debt and derivatives, using incremental borrowing rates currently available on loans with similar terms and maturities. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into € 750.0 million of forward-starting swaps. The forward-starting swap agreements were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a € 750.0 million 6 -year fixed-rate note. Upon termination, a loss of $ 5.0 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into $ 500.0 million of treasury locks. The treasury locks were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a $ 1,000.0 million 10 -year fixed-rate note. Upon termination, a loss of $ 1.4 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the second quarter of fiscal 2023, we entered into a $ 500.0 million notional amount interest swap to convert our $ 500.0 million fixed rate notes due November 18, 2025 , to a floating rate. As of May 28, 2023, the pre-tax amount of cash-settled interest rate hedge gain or loss remaining in AOCI, which will be reclassified to earnings over the remaining term of the related underlying debt, follows: In Millions Gain/(Loss) 3.65 % notes due February 15, 2024 $ 1.3 4.0 % notes due April 17, 2025 (1.1) 3.2 % notes due February 10, 2027 6.3 1.5 % notes due April 27, 2027 (1.3) 4.2 % notes due April 17, 2028 (5.0) 3.907 % notes due April 13, 2029 (4.9) 2.25 % notes due October 14, 2031 16.5 4.95 % notes due March 29, 2033 (1.4) 4.55 % notes due April 17, 2038 (8.1) 5.4 % notes due June 15, 2040 (9.5) 4.15 % notes due February 15, 2043 7.8 4.7 % notes due April 17, 2048 (11.8) Net pre-tax hedge loss in AOCI $ (11.2) , GENERAL MILLS INC 10-K form, page 58: 58 The following table summarizes the notional amounts and weighted-average interest rates of our interest rate derivatives. Average floating rates are based on rates as of the end of the reporting period. In Millions May 28, 2023 May 29, 2022 Pay-floating swaps - notional amount $ 1,143.4 $ 644.1 Average receive rate 2.6 % 0.4 % Average pay rate 2.5 % 0.1 % The floating-rate swap contracts outstanding as of May 28, 2023, mature in fiscal 2026 . FOREIGN EXCHANGE RISK Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, intercompany loans, product shipments, and foreign-denominated debt. We are also exposed to the translation of foreign currency earnings to the U.S. dollar. Our principal exposures are to the Australian dollar, Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. We primarily use foreign currency forward contracts to selectively hedge our foreign currency cash flow exposures. We also generally swap our foreign-denominated commercial paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with foreign exchange exposure. The gains or losses on these derivatives offset the foreign currency revaluation gains or losses recorded in earnings on the associated borrowings. We generally do not hedge more than 18 months in advance. As of May 28, 2023, the net notional value of foreign exchange derivatives was $ 933.0 million. We also have net investments in foreign subsidiaries that are denominated in euros. We hedged a portion of these net investments by issuing euro-denominated commercial paper and foreign exchange forward contracts. As of May 28, 2023, we hedged a portion of these net investments with € 2,949.9 million of euro denominated bonds. As of May 28, 2023, we had deferred net foreign currency transaction gains of $ 71.9 million in AOCI associated with net investment hedging activity. EQUITY INSTRUMENTS Equity price movements affect our compensation expense as certain investments made by our employees in our deferred compensation plan are revalued. We use equity swaps to manage this risk. As of May 28, 2023, the net notional amount of our equity swaps was $ 177.5 million. In fiscal 2024, $ 165.4 million of swap contracts will mature, and $ 12.1 million of swap contracts mature in fiscal 2025. , GENERAL MILLS INC 10-K form, page 59: 59 FAIR VALUE MEASUREMENTS AND FINANCIAL STATEMENT PRESENTATION The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value hierarchy as of May 28, 2023, and May 29, 2022, were as follows: May 28, 2023 May 28, 2023 Fair Values of Assets Fair Values of Liabilities In Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives designated as hedging instruments: Interest rate contracts (a) (b) $ - $ - $ - $ - $ - $ (62.2) $ - $ (62.2) Foreign exchange contracts (a) (c) - 10.3 - 10.3 - (2.5) - (2.5) Total - 10.3 - 10.3 - (64.7) - (64.7) Derivatives not designated as hedging instruments: Foreign exchange contracts (a) (c) - 0.2 - 0.2 - (5.6) - (5.6) Commodity contracts (a) (d) - 0.5 - 0.5 - (29.3) - (29.3) Grain contracts (a) (d) - 2.3 - 2.3 - (11.8) - (11.8) Total - 3.0 - 3.0 - (46.7) - (46.7) Other assets and liabilities reported at fair value: Marketable investments (a) (e) (f) 122.7 2.3 34.8 159.8 - - - - Long-lived assets (g) - 1.0 - 1.0 - - - - Total 122.7 3.3 34.8 160.8 - - - - Total assets, liabilities, and derivative positions recorded at fair value $ 122.7 $ 16.6 $ 34.8 $ 174.1 $ - $ (111.4) $ - $ (111.4) (a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash and cash equivalents. (b) Based on EURIBOR and swap rates. As of May 28, 2023, the carrying amount of hedged debt designated as the hedged item in a fair value hedge was $ 589.7 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 28, 2023, the cumulative amount of fair value hedging basis adjustments was $ 53.7 million. (c) Based on observable market transactions of spot currency rates and forward currency prices. (d) Based on prices of futures exchanges and recently reported transactions in the marketplace. (e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing. (f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2023, we recorded an impairment charge of $ 32.4 million resulting from the determination of fair value utilizing level 3 inputs including revised projections of future operating results and observable transaction data for similar instruments. (g) We recorded $ 8.6 million in non-cash impairment charges in fiscal 2023 to write down certain long-lived assets to their fair value. Fair value was based on recently reported transactions for similar assets in the marketplace. These assets had a carrying value of $ 9.6 million and were associated with the restructuring actions described in Note 4. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 56: 56 The Procter & Gamble Company Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which was guaranteed by the Company, was recorded as debt with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt was recorded as Interest expense. Dividends on all preferred shares are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows: | | | | | | | | |---:|:--------------------|:-------|:-----|:-------|:-----|:-------| | 1 | Shares in thousands | 2023 | 2022 | | 2021 | | | 2 | Allocated | 24,449 | | 25,901 | | 27,759 | | 3 | Unallocated | 535 | | 1,123 | | 1,769 | | 4 | TOTAL SERIES A | 24,984 | | 27,024 | | 29,528 | | 6 | Allocated | 32,172 | | 30,719 | | 29,203 | | 7 | Unallocated | 17,867 | | 20,120 | | 22,349 | | 8 | TOTAL SERIES B | 50,039 | | 50,839 | | 51,552 | For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception. NOTE 9 RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position was $1,088 and $219 as of June 30, 2023 and 2022, respectively. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company's diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 57: The Procter & Gamble Company 57 To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the net investment being hedged. The time value component is subsequently reported in income on a systematic basis. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the fiscal years ended June 30, 2023 and 2022, we did not have any financial commodity hedging activity. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. The Company had no significant activity with Level 3 assets and liabilities during the periods presented. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Assets and Liabilities Measured at Fair Value Cash equivalents were $6.8 billion and $6.0 billion as of June 30, 2023 and 2022, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented. The fair value of long-term debt was $26.9 billion and $25.7 billion as of June 30, 2023 and 2022, respectively. This includes the current portion of long-term debt instruments ($3.9 billion as of June 30, 2023, and $3.6 billion as of June 30, 2022). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 58: 58 The Procter & Gamble Company Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2023 and 2022, are as follows: | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------|:----------------|:-------|:-----------------|:-----------------------|:-------|:-----|:-----|:---|:-----|:---|:----|:---|:--------|:---|:------| | 1 | | Notional Amount | | Fair Value Asset | Fair Value (Liability) | | | | | | | | | | | | | 2 | As of June 30 | 2023 | | 2022 | 2023 | | 2022 | 2023 | | 2022 | | | | | | | | 3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | | | | | | | | | | | | | | | | | 4 | Interest rate contracts | $ | 4,044 | | $ | 4,972 | | $ | - | | $ | 3 | $ | (445) | $ | (307) | | 5 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | | | | | | | | | | | | | | | | | 6 | Foreign currency interest rate contracts | $ | 11,005 | | $ | 7,943 | | $ | 26 | | $ | 561 | $ | (631) | $ | (1) | | 7 | TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | $ | 15,049 | | $ | 12,915 | | $ | 26 | | $ | 564 | $ | (1,076) | $ | (308) | | 9 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | | | | | | | | | | | | | | | | | 10 | Foreign currency contracts | $ | 3,489 | | $ | 5,625 | | $ | 7 | | $ | 6 | $ | (42) | $ | (61) | | 12 | TOTAL DERIVATIVES AT FAIR VALUE | $ | 18,538 | | $ | 18,540 | | $ | 33 | | $ | 570 | $ | (1,118) | $ | (369) | The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $3.6 billion and $4.7 billion as of June 30, 2023 and 2022, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.8 billion and $11.2 billion as of June 30, 2023 and 2022, respectively. The increase in the notional balance of derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market. The decrease in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period. Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: | | | | | | | | |---:|:------------------------------------------------------------|:-------------------------------------------------------|:------|:-----|:---|:------| | 1 | | Amount of Gain/(Loss) Recognized in OCI on Derivatives | | | | | | 2 | Fiscal years ended June 30 | 2023 | | 2022 | | | | 3 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) | | | | | | | 4 | Foreign currency interest rate contracts | $ | (544) | | $ | 1,033 | (1)For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $238 and $73 for the fiscal years ended June 30, 2023 and 2022, respectively. (2)In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $(315) and $1,639, for the fiscal years ended June 30, 2023 and 2022, respectively. | | | | | | | | |---:|:--------------------------------------------------|:---------------------------------------------|:------|:-----|:---|:------| | 1 | | Amount of Gain/(Loss) Recognized in Earnings | | | | | | 2 | Fiscal years ended June 30 | 2023 | | 2022 | | | | 3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | | | | | | | 4 | Interest rate contracts | $ | (141) | | $ | (450) | | 5 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | | | | | | | 6 | Foreign currency contracts | $ | (97) | | $ | (149) | The loss on the derivatives in fair value hedging relationships is fully offset by the mark-to-market impact of the related exposure. These are both recognized in the Consolidated Statement of Earnings in Interest Expense. The loss on derivatives not designated as hedging instruments is substantially offset by the currency mark-to-market of the related exposure. These are both recognized in the Consolidated Statements of Earnings in SG&A. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 59: The Procter & Gamble Company 59 NOTE 10 SHORT-TERM AND LONG-TERM DEBT | | | | | | | | |---:|:---------------------------------------------------------------|:------|:-------|:------|:----|:------| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | DEBT DUE WITHIN ONE YEAR | | | | | | | 3 | Current portion of long-term debt | $ | 3,951 | | $ | 3,647 | | 4 | Commercial paper | 6,236 | | 4,805 | | | | 5 | Other | 42 | | 193 | | | | 6 | TOTAL | $ | 10,229 | | $ | 8,645 | | 7 | Weighted average interest rate of debt due within one year (1) | 4.2 | % | | 0.8 | % | (1)Weighted average interest rate of debt due within one year includes the effects of interest rate swaps discussed in Note 9. | | | | | | | | |---:|:-----------------------------------------------------|:--------|:-------|:--------|:---|:-------| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | LONG-TERM DEBT | | | | | | | 3 | 3.10% USD note due August 2023 | $ | 1,000 | | $ | 1,000 | | 4 | 1.13% EUR note due November 2023 | 1,359 | | 1,306 | | | | 5 | 0.50% EUR note due October 2024 | 544 | | 523 | | | | 6 | 0.63% EUR note due October 2024 | 870 | | 836 | | | | 7 | 0.55% USD note due October 2025 | 1,000 | | 1,000 | | | | 8 | 4.10% USD note due January 2026 | 650 | | - | | | | 9 | 2.70% USD note due February 2026 | 600 | | 600 | | | | 10 | 1.00% USD note due April 2026 | 1,000 | | 1,000 | | | | 11 | 3.25% EUR note due August 2026 | 707 | | - | | | | 12 | 2.45% USD note due November 2026 | 875 | | 875 | | | | 13 | 1.90% USD note due February 2027 | 1,000 | | 1,000 | | | | 14 | 2.80% USD note due March 2027 | 500 | | 500 | | | | 15 | 4.88% EUR note due May 2027 | 1,087 | | 1,045 | | | | 16 | 2.85% USD note due August 2027 | 750 | | 750 | | | | 17 | 3.95% USD note due January 2028 | 600 | | - | | | | 18 | 1.20% EUR note due October 2028 | 870 | | 836 | | | | 19 | 1.25% EUR note due October 2029 | 544 | | 523 | | | | 20 | 3.00% USD note due March 2030 | 1,500 | | 1,500 | | | | 21 | 0.35% EUR note due May 2030 | 544 | | 523 | | | | 22 | 1.20% USD note due October 2030 | 1,250 | | 1,250 | | | | 23 | 1.95% USD note due April 2031 | 1,000 | | 1,000 | | | | 24 | 3.25% EUR note due August 2031 | 707 | | - | | | | 25 | 2.30% USD note due February 2032 | 850 | | 850 | | | | 26 | 4.05% USD note due January 2033 | 850 | | - | | | | 27 | 5.55% USD note due March 2037 | 716 | | 716 | | | | 28 | 1.88% EUR note due October 2038 | 544 | | 523 | | | | 29 | 3.55% USD note due March 2040 | 516 | | 516 | | | | 30 | 0.90% EUR note due November 2041 | 652 | | 627 | | | | 31 | All other long-term debt | 5,244 | | 7,196 | | | | 32 | Current portion of long-term debt | (3,951) | | (3,647) | | | | 33 | TOTAL | $ | 24,378 | | $ | 22,848 | | 34 | Weighted average interest rate of long-term debt (1) | 2.9% | | 2.2% | | | (1)Weighted average interest rate of long-term debt includes the effects of interest rate swaps discussed in Note 9. Amounts in millions of dollars except per share amounts or as otherwise specified.
55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , 56 There were no realized gains or losses from sales of marketable securities in fiscal 2023 and 2022. Gains and losses are determined by specific identification. Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security's maturity date. The aggregate unrealized gains and losses on available for sale debt securities, net of tax effects, are classified in AOCI within stockholders' equity. Scheduled maturities of our marketable securities are as follows: Marketable Securities In Millions Cost Fair Value Under 1 year (current) $ 2.3 $ 2.3 Equity securities 117.5 122.7 Total $ 119.8 $ 125.0 As of May 28, 2023, we had $ 2.2 million of marketable debt securities pledged as collateral for derivative contracts. RISK MANAGEMENT ACTIVITIES As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices. To manage these risks, we may enter into various derivative transactions (e.g., futures, options, and swaps) pursuant to our established policies. COMMODITY PRICE RISK Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close as possible to or below our planned cost. We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. Unallocated corporate items for fiscal 2023, 2022, and 2021 included: Fiscal Year In Millions 2023 2022 2021 Net (loss) gain on mark-to-market valuation of commodity positions $ (154.4) $ 303.3 $ 138.2 Net gain on commodity positions reclassified from unallocated corporate items to segment operating profit (89.5) (188.0) (8.8) Net mark-to-market revaluation of certain grain inventories (48.0) 17.8 9.4 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (291.9) $ 133.1 $ 138.8 , 57 As of May 28, 2023, the net notional value of commodity derivatives was $ 406.8 million, of which $ 257.9 million related to agricultural inputs and $ 148.9 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. INTEREST RATE RISK We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. Primary exposures include U.S. Treasury rates, SOFR, Euribor, and commercial paper rates in the United States and Europe. We use interest rate swaps, forward-starting interest rate swaps, and treasury locks to hedge our exposure to interest rate changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt, based on current and projected market conditions. Generally under these swaps, we agree with a counterparty to exchange the difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount. Floating Interest Rate Exposures - Floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated debt. Fixed Interest Rate Exposures - Fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness assessed based on changes in the fair value of the underlying debt and derivatives, using incremental borrowing rates currently available on loans with similar terms and maturities. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into € 750.0 million of forward-starting swaps. The forward-starting swap agreements were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a € 750.0 million 6 -year fixed-rate note. Upon termination, a loss of $ 5.0 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into $ 500.0 million of treasury locks. The treasury locks were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a $ 1,000.0 million 10 -year fixed-rate note. Upon termination, a loss of $ 1.4 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the second quarter of fiscal 2023, we entered into a $ 500.0 million notional amount interest swap to convert our $ 500.0 million fixed rate notes due November 18, 2025 , to a floating rate. As of May 28, 2023, the pre-tax amount of cash-settled interest rate hedge gain or loss remaining in AOCI, which will be reclassified to earnings over the remaining term of the related underlying debt, follows: In Millions Gain/(Loss) 3.65 % notes due February 15, 2024 $ 1.3 4.0 % notes due April 17, 2025 (1.1) 3.2 % notes due February 10, 2027 6.3 1.5 % notes due April 27, 2027 (1.3) 4.2 % notes due April 17, 2028 (5.0) 3.907 % notes due April 13, 2029 (4.9) 2.25 % notes due October 14, 2031 16.5 4.95 % notes due March 29, 2033 (1.4) 4.55 % notes due April 17, 2038 (8.1) 5.4 % notes due June 15, 2040 (9.5) 4.15 % notes due February 15, 2043 7.8 4.7 % notes due April 17, 2048 (11.8) Net pre-tax hedge loss in AOCI $ (11.2) , 58 The following table summarizes the notional amounts and weighted-average interest rates of our interest rate derivatives. Average floating rates are based on rates as of the end of the reporting period. In Millions May 28, 2023 May 29, 2022 Pay-floating swaps - notional amount $ 1,143.4 $ 644.1 Average receive rate 2.6 % 0.4 % Average pay rate 2.5 % 0.1 % The floating-rate swap contracts outstanding as of May 28, 2023, mature in fiscal 2026 . FOREIGN EXCHANGE RISK Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, intercompany loans, product shipments, and foreign-denominated debt. We are also exposed to the translation of foreign currency earnings to the U.S. dollar. Our principal exposures are to the Australian dollar, Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. We primarily use foreign currency forward contracts to selectively hedge our foreign currency cash flow exposures. We also generally swap our foreign-denominated commercial paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with foreign exchange exposure. The gains or losses on these derivatives offset the foreign currency revaluation gains or losses recorded in earnings on the associated borrowings. We generally do not hedge more than 18 months in advance. As of May 28, 2023, the net notional value of foreign exchange derivatives was $ 933.0 million. We also have net investments in foreign subsidiaries that are denominated in euros. We hedged a portion of these net investments by issuing euro-denominated commercial paper and foreign exchange forward contracts. As of May 28, 2023, we hedged a portion of these net investments with € 2,949.9 million of euro denominated bonds. As of May 28, 2023, we had deferred net foreign currency transaction gains of $ 71.9 million in AOCI associated with net investment hedging activity. EQUITY INSTRUMENTS Equity price movements affect our compensation expense as certain investments made by our employees in our deferred compensation plan are revalued. We use equity swaps to manage this risk. As of May 28, 2023, the net notional amount of our equity swaps was $ 177.5 million. In fiscal 2024, $ 165.4 million of swap contracts will mature, and $ 12.1 million of swap contracts mature in fiscal 2025. , 59 FAIR VALUE MEASUREMENTS AND FINANCIAL STATEMENT PRESENTATION The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value hierarchy as of May 28, 2023, and May 29, 2022, were as follows: May 28, 2023 May 28, 2023 Fair Values of Assets Fair Values of Liabilities In Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives designated as hedging instruments: Interest rate contracts (a) (b) $ - $ - $ - $ - $ - $ (62.2) $ - $ (62.2) Foreign exchange contracts (a) (c) - 10.3 - 10.3 - (2.5) - (2.5) Total - 10.3 - 10.3 - (64.7) - (64.7) Derivatives not designated as hedging instruments: Foreign exchange contracts (a) (c) - 0.2 - 0.2 - (5.6) - (5.6) Commodity contracts (a) (d) - 0.5 - 0.5 - (29.3) - (29.3) Grain contracts (a) (d) - 2.3 - 2.3 - (11.8) - (11.8) Total - 3.0 - 3.0 - (46.7) - (46.7) Other assets and liabilities reported at fair value: Marketable investments (a) (e) (f) 122.7 2.3 34.8 159.8 - - - - Long-lived assets (g) - 1.0 - 1.0 - - - - Total 122.7 3.3 34.8 160.8 - - - - Total assets, liabilities, and derivative positions recorded at fair value $ 122.7 $ 16.6 $ 34.8 $ 174.1 $ - $ (111.4) $ - $ (111.4) (a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash and cash equivalents. (b) Based on EURIBOR and swap rates. As of May 28, 2023, the carrying amount of hedged debt designated as the hedged item in a fair value hedge was $ 589.7 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 28, 2023, the cumulative amount of fair value hedging basis adjustments was $ 53.7 million. (c) Based on observable market transactions of spot currency rates and forward currency prices. (d) Based on prices of futures exchanges and recently reported transactions in the marketplace. (e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing. (f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2023, we recorded an impairment charge of $ 32.4 million resulting from the determination of fair value utilizing level 3 inputs including revised projections of future operating results and observable transaction data for similar instruments. (g) We recorded $ 8.6 million in non-cash impairment charges in fiscal 2023 to write down certain long-lived assets to their fair value. Fair value was based on recently reported transactions for similar assets in the marketplace. These assets had a carrying value of $ 9.6 million and were associated with the restructuring actions described in Note 4. , 56 The Procter & Gamble Company Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which was guaranteed by the Company, was recorded as debt with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt was recorded as Interest expense. Dividends on all preferred shares are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows: | | | | | | | | |---:|:--------------------|:-------|:-----|:-------|:-----|:-------| | 1 | Shares in thousands | 2023 | 2022 | | 2021 | | | 2 | Allocated | 24,449 | | 25,901 | | 27,759 | | 3 | Unallocated | 535 | | 1,123 | | 1,769 | | 4 | TOTAL SERIES A | 24,984 | | 27,024 | | 29,528 | | 6 | Allocated | 32,172 | | 30,719 | | 29,203 | | 7 | Unallocated | 17,867 | | 20,120 | | 22,349 | | 8 | TOTAL SERIES B | 50,039 | | 50,839 | | 51,552 | For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception. NOTE 9 RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position was $1,088 and $219 as of June 30, 2023 and 2022, respectively. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company's diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 57 To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the net investment being hedged. The time value component is subsequently reported in income on a systematic basis. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the fiscal years ended June 30, 2023 and 2022, we did not have any financial commodity hedging activity. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. The Company had no significant activity with Level 3 assets and liabilities during the periods presented. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Assets and Liabilities Measured at Fair Value Cash equivalents were $6.8 billion and $6.0 billion as of June 30, 2023 and 2022, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented. The fair value of long-term debt was $26.9 billion and $25.7 billion as of June 30, 2023 and 2022, respectively. This includes the current portion of long-term debt instruments ($3.9 billion as of June 30, 2023, and $3.6 billion as of June 30, 2022). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Amounts in millions of dollars except per share amounts or as otherwise specified. , 58 The Procter & Gamble Company Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2023 and 2022, are as follows: | | | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------|:----------------|:-------|:-----------------|:-----------------------|:-------|:-----|:-----|:---|:-----|:---|:----|:---|:--------|:---|:------| | 1 | | Notional Amount | | Fair Value Asset | Fair Value (Liability) | | | | | | | | | | | | | 2 | As of June 30 | 2023 | | 2022 | 2023 | | 2022 | 2023 | | 2022 | | | | | | | | 3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | | | | | | | | | | | | | | | | | 4 | Interest rate contracts | $ | 4,044 | | $ | 4,972 | | $ | - | | $ | 3 | $ | (445) | $ | (307) | | 5 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS | | | | | | | | | | | | | | | | | 6 | Foreign currency interest rate contracts | $ | 11,005 | | $ | 7,943 | | $ | 26 | | $ | 561 | $ | (631) | $ | (1) | | 7 | TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS | $ | 15,049 | | $ | 12,915 | | $ | 26 | | $ | 564 | $ | (1,076) | $ | (308) | | 9 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | | | | | | | | | | | | | | | | | 10 | Foreign currency contracts | $ | 3,489 | | $ | 5,625 | | $ | 7 | | $ | 6 | $ | (42) | $ | (61) | | 12 | TOTAL DERIVATIVES AT FAIR VALUE | $ | 18,538 | | $ | 18,540 | | $ | 33 | | $ | 570 | $ | (1,118) | $ | (369) | The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $3.6 billion and $4.7 billion as of June 30, 2023 and 2022, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.8 billion and $11.2 billion as of June 30, 2023 and 2022, respectively. The increase in the notional balance of derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market. The decrease in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period. Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: | | | | | | | | |---:|:------------------------------------------------------------|:-------------------------------------------------------|:------|:-----|:---|:------| | 1 | | Amount of Gain/(Loss) Recognized in OCI on Derivatives | | | | | | 2 | Fiscal years ended June 30 | 2023 | | 2022 | | | | 3 | DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2) | | | | | | | 4 | Foreign currency interest rate contracts | $ | (544) | | $ | 1,033 | (1)For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $238 and $73 for the fiscal years ended June 30, 2023 and 2022, respectively. (2)In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $(315) and $1,639, for the fiscal years ended June 30, 2023 and 2022, respectively. | | | | | | | | |---:|:--------------------------------------------------|:---------------------------------------------|:------|:-----|:---|:------| | 1 | | Amount of Gain/(Loss) Recognized in Earnings | | | | | | 2 | Fiscal years ended June 30 | 2023 | | 2022 | | | | 3 | DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS | | | | | | | 4 | Interest rate contracts | $ | (141) | | $ | (450) | | 5 | DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS | | | | | | | 6 | Foreign currency contracts | $ | (97) | | $ | (149) | The loss on the derivatives in fair value hedging relationships is fully offset by the mark-to-market impact of the related exposure. These are both recognized in the Consolidated Statement of Earnings in Interest Expense. The loss on derivatives not designated as hedging instruments is substantially offset by the currency mark-to-market of the related exposure. These are both recognized in the Consolidated Statements of Earnings in SG&A. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 59 NOTE 10 SHORT-TERM AND LONG-TERM DEBT | | | | | | | | |---:|:---------------------------------------------------------------|:------|:-------|:------|:----|:------| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | DEBT DUE WITHIN ONE YEAR | | | | | | | 3 | Current portion of long-term debt | $ | 3,951 | | $ | 3,647 | | 4 | Commercial paper | 6,236 | | 4,805 | | | | 5 | Other | 42 | | 193 | | | | 6 | TOTAL | $ | 10,229 | | $ | 8,645 | | 7 | Weighted average interest rate of debt due within one year (1) | 4.2 | % | | 0.8 | % | (1)Weighted average interest rate of debt due within one year includes the effects of interest rate swaps discussed in Note 9. | | | | | | | | |---:|:-----------------------------------------------------|:--------|:-------|:--------|:---|:-------| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | LONG-TERM DEBT | | | | | | | 3 | 3.10% USD note due August 2023 | $ | 1,000 | | $ | 1,000 | | 4 | 1.13% EUR note due November 2023 | 1,359 | | 1,306 | | | | 5 | 0.50% EUR note due October 2024 | 544 | | 523 | | | | 6 | 0.63% EUR note due October 2024 | 870 | | 836 | | | | 7 | 0.55% USD note due October 2025 | 1,000 | | 1,000 | | | | 8 | 4.10% USD note due January 2026 | 650 | | - | | | | 9 | 2.70% USD note due February 2026 | 600 | | 600 | | | | 10 | 1.00% USD note due April 2026 | 1,000 | | 1,000 | | | | 11 | 3.25% EUR note due August 2026 | 707 | | - | | | | 12 | 2.45% USD note due November 2026 | 875 | | 875 | | | | 13 | 1.90% USD note due February 2027 | 1,000 | | 1,000 | | | | 14 | 2.80% USD note due March 2027 | 500 | | 500 | | | | 15 | 4.88% EUR note due May 2027 | 1,087 | | 1,045 | | | | 16 | 2.85% USD note due August 2027 | 750 | | 750 | | | | 17 | 3.95% USD note due January 2028 | 600 | | - | | | | 18 | 1.20% EUR note due October 2028 | 870 | | 836 | | | | 19 | 1.25% EUR note due October 2029 | 544 | | 523 | | | | 20 | 3.00% USD note due March 2030 | 1,500 | | 1,500 | | | | 21 | 0.35% EUR note due May 2030 | 544 | | 523 | | | | 22 | 1.20% USD note due October 2030 | 1,250 | | 1,250 | | | | 23 | 1.95% USD note due April 2031 | 1,000 | | 1,000 | | | | 24 | 3.25% EUR note due August 2031 | 707 | | - | | | | 25 | 2.30% USD note due February 2032 | 850 | | 850 | | | | 26 | 4.05% USD note due January 2033 | 850 | | - | | | | 27 | 5.55% USD note due March 2037 | 716 | | 716 | | | | 28 | 1.88% EUR note due October 2038 | 544 | | 523 | | | | 29 | 3.55% USD note due March 2040 | 516 | | 516 | | | | 30 | 0.90% EUR note due November 2041 | 652 | | 627 | | | | 31 | All other long-term debt | 5,244 | | 7,196 | | | | 32 | Current portion of long-term debt | (3,951) | | (3,647) | | | | 33 | TOTAL | $ | 24,378 | | $ | 22,848 | | 34 | Weighted average interest rate of long-term debt (1) | 2.9% | | 2.2% | | | (1)Weighted average interest rate of long-term debt includes the effects of interest rate swaps discussed in Note 9. Amounts in millions of dollars except per share amounts or as otherwise specified.
GENERAL MILLS INC 10-K form, page 55: 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , GENERAL MILLS INC 10-K form, page 56: 56 There were no realized gains or losses from sales of marketable securities in fiscal 2023 and 2022. Gains and losses are determined by specific identification. Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security's maturity date. The aggregate unrealized gains and losses on available for sale debt securities, net of tax effects, are classified in AOCI within stockholders' equity. Scheduled maturities of our marketable securities are as follows: Marketable Securities In Millions Cost Fair Value Under 1 year (current) $ 2.3 $ 2.3 Equity securities 117.5 122.7 Total $ 119.8 $ 125.0 As of May 28, 2023, we had $ 2.2 million of marketable debt securities pledged as collateral for derivative contracts. RISK MANAGEMENT ACTIVITIES As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices. To manage these risks, we may enter into various derivative transactions (e.g., futures, options, and swaps) pursuant to our established policies. COMMODITY PRICE RISK Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close as possible to or below our planned cost. We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. Unallocated corporate items for fiscal 2023, 2022, and 2021 included: Fiscal Year In Millions 2023 2022 2021 Net (loss) gain on mark-to-market valuation of commodity positions $ (154.4) $ 303.3 $ 138.2 Net gain on commodity positions reclassified from unallocated corporate items to segment operating profit (89.5) (188.0) (8.8) Net mark-to-market revaluation of certain grain inventories (48.0) 17.8 9.4 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (291.9) $ 133.1 $ 138.8 , GENERAL MILLS INC 10-K form, page 57: 57 As of May 28, 2023, the net notional value of commodity derivatives was $ 406.8 million, of which $ 257.9 million related to agricultural inputs and $ 148.9 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. INTEREST RATE RISK We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. Primary exposures include U.S. Treasury rates, SOFR, Euribor, and commercial paper rates in the United States and Europe. We use interest rate swaps, forward-starting interest rate swaps, and treasury locks to hedge our exposure to interest rate changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt, based on current and projected market conditions. Generally under these swaps, we agree with a counterparty to exchange the difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount. Floating Interest Rate Exposures - Floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated debt. Fixed Interest Rate Exposures - Fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness assessed based on changes in the fair value of the underlying debt and derivatives, using incremental borrowing rates currently available on loans with similar terms and maturities. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into € 750.0 million of forward-starting swaps. The forward-starting swap agreements were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a € 750.0 million 6 -year fixed-rate note. Upon termination, a loss of $ 5.0 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into $ 500.0 million of treasury locks. The treasury locks were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a $ 1,000.0 million 10 -year fixed-rate note. Upon termination, a loss of $ 1.4 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the second quarter of fiscal 2023, we entered into a $ 500.0 million notional amount interest swap to convert our $ 500.0 million fixed rate notes due November 18, 2025 , to a floating rate. As of May 28, 2023, the pre-tax amount of cash-settled interest rate hedge gain or loss remaining in AOCI, which will be reclassified to earnings over the remaining term of the related underlying debt, follows: In Millions Gain/(Loss) 3.65 % notes due February 15, 2024 $ 1.3 4.0 % notes due April 17, 2025 (1.1) 3.2 % notes due February 10, 2027 6.3 1.5 % notes due April 27, 2027 (1.3) 4.2 % notes due April 17, 2028 (5.0) 3.907 % notes due April 13, 2029 (4.9) 2.25 % notes due October 14, 2031 16.5 4.95 % notes due March 29, 2033 (1.4) 4.55 % notes due April 17, 2038 (8.1) 5.4 % notes due June 15, 2040 (9.5) 4.15 % notes due February 15, 2043 7.8 4.7 % notes due April 17, 2048 (11.8) Net pre-tax hedge loss in AOCI $ (11.2) , GENERAL MILLS INC 10-K form, page 58: 58 The following table summarizes the notional amounts and weighted-average interest rates of our interest rate derivatives. Average floating rates are based on rates as of the end of the reporting period. In Millions May 28, 2023 May 29, 2022 Pay-floating swaps - notional amount $ 1,143.4 $ 644.1 Average receive rate 2.6 % 0.4 % Average pay rate 2.5 % 0.1 % The floating-rate swap contracts outstanding as of May 28, 2023, mature in fiscal 2026 . FOREIGN EXCHANGE RISK Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, intercompany loans, product shipments, and foreign-denominated debt. We are also exposed to the translation of foreign currency earnings to the U.S. dollar. Our principal exposures are to the Australian dollar, Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. We primarily use foreign currency forward contracts to selectively hedge our foreign currency cash flow exposures. We also generally swap our foreign-denominated commercial paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with foreign exchange exposure. The gains or losses on these derivatives offset the foreign currency revaluation gains or losses recorded in earnings on the associated borrowings. We generally do not hedge more than 18 months in advance. As of May 28, 2023, the net notional value of foreign exchange derivatives was $ 933.0 million. We also have net investments in foreign subsidiaries that are denominated in euros. We hedged a portion of these net investments by issuing euro-denominated commercial paper and foreign exchange forward contracts. As of May 28, 2023, we hedged a portion of these net investments with € 2,949.9 million of euro denominated bonds. As of May 28, 2023, we had deferred net foreign currency transaction gains of $ 71.9 million in AOCI associated with net investment hedging activity. EQUITY INSTRUMENTS Equity price movements affect our compensation expense as certain investments made by our employees in our deferred compensation plan are revalued. We use equity swaps to manage this risk. As of May 28, 2023, the net notional amount of our equity swaps was $ 177.5 million. In fiscal 2024, $ 165.4 million of swap contracts will mature, and $ 12.1 million of swap contracts mature in fiscal 2025. , GENERAL MILLS INC 10-K form, page 59: 59 FAIR VALUE MEASUREMENTS AND FINANCIAL STATEMENT PRESENTATION The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value hierarchy as of May 28, 2023, and May 29, 2022, were as follows: May 28, 2023 May 28, 2023 Fair Values of Assets Fair Values of Liabilities In Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives designated as hedging instruments: Interest rate contracts (a) (b) $ - $ - $ - $ - $ - $ (62.2) $ - $ (62.2) Foreign exchange contracts (a) (c) - 10.3 - 10.3 - (2.5) - (2.5) Total - 10.3 - 10.3 - (64.7) - (64.7) Derivatives not designated as hedging instruments: Foreign exchange contracts (a) (c) - 0.2 - 0.2 - (5.6) - (5.6) Commodity contracts (a) (d) - 0.5 - 0.5 - (29.3) - (29.3) Grain contracts (a) (d) - 2.3 - 2.3 - (11.8) - (11.8) Total - 3.0 - 3.0 - (46.7) - (46.7) Other assets and liabilities reported at fair value: Marketable investments (a) (e) (f) 122.7 2.3 34.8 159.8 - - - - Long-lived assets (g) - 1.0 - 1.0 - - - - Total 122.7 3.3 34.8 160.8 - - - - Total assets, liabilities, and derivative positions recorded at fair value $ 122.7 $ 16.6 $ 34.8 $ 174.1 $ - $ (111.4) $ - $ (111.4) (a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash and cash equivalents. (b) Based on EURIBOR and swap rates. As of May 28, 2023, the carrying amount of hedged debt designated as the hedged item in a fair value hedge was $ 589.7 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 28, 2023, the cumulative amount of fair value hedging basis adjustments was $ 53.7 million. (c) Based on observable market transactions of spot currency rates and forward currency prices. (d) Based on prices of futures exchanges and recently reported transactions in the marketplace. (e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing. (f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2023, we recorded an impairment charge of $ 32.4 million resulting from the determination of fair value utilizing level 3 inputs including revised projections of future operating results and observable transaction data for similar instruments. (g) We recorded $ 8.6 million in non-cash impairment charges in fiscal 2023 to write down certain long-lived assets to their fair value. Fair value was based on recently reported transactions for similar assets in the marketplace. These assets had a carrying value of $ 9.6 million and were associated with the restructuring actions described in Note 4. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 56: 56 The Procter & Gamble Company Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which was guaranteed by the Company, was recorded as debt with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt was recorded as Interest expense. Dividends on all preferred shares are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Shares in thousands</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Allocated</td><td colspan="2">24,449 </td><td></td><td colspan="3"></td><td colspan="2">25,901 </td><td></td><td colspan="3"></td><td colspan="2">27,759 </td><td></td></tr><tr><td colspan="3">Unallocated</td><td colspan="2">535 </td><td></td><td colspan="3"></td><td colspan="2">1,123 </td><td></td><td colspan="3"></td><td colspan="2">1,769 </td><td></td></tr><tr><td colspan="3">TOTAL SERIES A</td><td colspan="2">24,984 </td><td></td><td colspan="3"></td><td colspan="2">27,024 </td><td></td><td colspan="3"></td><td colspan="2">29,528 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="6"></td><td colspan="6"></td></tr><tr><td colspan="3">Allocated</td><td colspan="2">32,172 </td><td></td><td colspan="3"></td><td colspan="2">30,719 </td><td></td><td colspan="3"></td><td colspan="2">29,203 </td><td></td></tr><tr><td colspan="3">Unallocated</td><td colspan="2">17,867 </td><td></td><td colspan="3"></td><td colspan="2">20,120 </td><td></td><td colspan="3"></td><td colspan="2">22,349 </td><td></td></tr><tr><td colspan="3">TOTAL SERIES B</td><td colspan="2">50,039 </td><td></td><td colspan="3"></td><td colspan="2">50,839 </td><td></td><td colspan="3"></td><td colspan="2">51,552 </td><td></td></tr></table> For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception. NOTE 9 RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position was $1,088 and $219 as of June 30, 2023 and 2022, respectively. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company's diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 57: The Procter & Gamble Company 57 To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the net investment being hedged. The time value component is subsequently reported in income on a systematic basis. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the fiscal years ended June 30, 2023 and 2022, we did not have any financial commodity hedging activity. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. The Company had no significant activity with Level 3 assets and liabilities during the periods presented. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Assets and Liabilities Measured at Fair Value Cash equivalents were $6.8 billion and $6.0 billion as of June 30, 2023 and 2022, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented. The fair value of long-term debt was $26.9 billion and $25.7 billion as of June 30, 2023 and 2022, respectively. This includes the current portion of long-term debt instruments ($3.9 billion as of June 30, 2023, and $3.6 billion as of June 30, 2022). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 58: 58 The Procter & Gamble Company Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2023 and 2022, are as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Notional Amount</td><td colspan="3"></td><td colspan="9">Fair Value Asset</td><td colspan="3"></td><td colspan="9">Fair Value (Liability)</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="18">DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest rate contracts</td><td>$</td><td>4,044 </td><td></td><td colspan="3"></td><td>$</td><td>4,972 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>(445)</td><td></td><td colspan="3"></td><td>$</td><td>(307)</td><td></td></tr><tr><td colspan="18">DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency interest rate contracts</td><td>$</td><td>11,005 </td><td></td><td colspan="3"></td><td>$</td><td>7,943 </td><td></td><td colspan="3"></td><td>$</td><td>26 </td><td></td><td colspan="3"></td><td>$</td><td>561 </td><td></td><td colspan="3"></td><td>$</td><td>(631)</td><td></td><td colspan="3"></td><td>$</td><td>(1)</td><td></td></tr><tr><td colspan="3">TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS</td><td>$</td><td>15,049 </td><td></td><td colspan="3"></td><td>$</td><td>12,915 </td><td></td><td colspan="3"></td><td>$</td><td>26 </td><td></td><td colspan="3"></td><td>$</td><td>564 </td><td></td><td colspan="3"></td><td>$</td><td>(1,076)</td><td></td><td colspan="3"></td><td>$</td><td>(308)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency contracts</td><td>$</td><td>3,489 </td><td></td><td colspan="3"></td><td>$</td><td>5,625 </td><td></td><td colspan="3"></td><td>$</td><td>7 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>(42)</td><td></td><td colspan="3"></td><td>$</td><td>(61)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL DERIVATIVES AT FAIR VALUE</td><td>$</td><td>18,538 </td><td></td><td colspan="3"></td><td>$</td><td>18,540 </td><td></td><td colspan="3"></td><td>$</td><td>33 </td><td></td><td colspan="3"></td><td>$</td><td>570 </td><td></td><td colspan="3"></td><td>$</td><td>(1,118)</td><td></td><td colspan="3"></td><td>$</td><td>(369)</td><td></td></tr></table> The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $3.6 billion and $4.7 billion as of June 30, 2023 and 2022, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.8 billion and $11.2 billion as of June 30, 2023 and 2022, respectively. The increase in the notional balance of derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market. The decrease in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period. Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Amount of Gain/(Loss) Recognized in OCI on Derivatives</td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2)</td></tr><tr><td colspan="3">Foreign currency interest rate contracts</td><td>$</td><td>(544)</td><td></td><td colspan="3"></td><td>$</td><td>1,033 </td><td></td></tr></table>(1)For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $238 and $73 for the fiscal years ended June 30, 2023 and 2022, respectively. (2)In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $(315) and $1,639, for the fiscal years ended June 30, 2023 and 2022, respectively. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Amount of Gain/(Loss) Recognized in Earnings</td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS</td></tr><tr><td colspan="3">Interest rate contracts</td><td>$</td><td>(141)</td><td></td><td colspan="3"></td><td>$</td><td>(450)</td><td></td></tr><tr><td colspan="12">DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS</td></tr><tr><td colspan="3">Foreign currency contracts</td><td>$</td><td>(97)</td><td></td><td colspan="3"></td><td>$</td><td>(149)</td><td></td></tr></table>The loss on the derivatives in fair value hedging relationships is fully offset by the mark-to-market impact of the related exposure. These are both recognized in the Consolidated Statement of Earnings in Interest Expense. The loss on derivatives not designated as hedging instruments is substantially offset by the currency mark-to-market of the related exposure. These are both recognized in the Consolidated Statements of Earnings in SG&A. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 59: The Procter & Gamble Company 59 NOTE 10 SHORT-TERM AND LONG-TERM DEBT <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DEBT DUE WITHIN ONE YEAR</td></tr><tr><td colspan="3">Current portion of long-term debt</td><td>$</td><td colspan="2">3,951</td><td colspan="3"></td><td>$</td><td colspan="2">3,647</td></tr><tr><td colspan="3">Commercial paper</td><td colspan="3">6,236</td><td colspan="3"></td><td colspan="3">4,805</td></tr><tr><td colspan="3">Other</td><td colspan="3">42</td><td colspan="3"></td><td colspan="3">193</td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td colspan="2">10,229</td><td colspan="3"></td><td>$</td><td colspan="2">8,645</td></tr><tr><td colspan="3">Weighted average interest rate of debt due within one year (1)</td><td colspan="2">4.2 </td><td>%</td><td colspan="3"></td><td colspan="2">0.8 </td><td>%</td></tr></table>(1)Weighted average interest rate of debt due within one year includes the effects of interest rate swaps discussed in Note 9. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">3.10% USD note due August 2023</td><td>$</td><td colspan="2">1,000</td><td colspan="3"></td><td>$</td><td colspan="2">1,000</td></tr><tr><td colspan="3">1.13% EUR note due November 2023</td><td colspan="3">1,359</td><td colspan="3"></td><td colspan="3">1,306</td></tr><tr><td colspan="3">0.50% EUR note due October 2024</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">0.63% EUR note due October 2024</td><td colspan="3">870</td><td colspan="3"></td><td colspan="3">836</td></tr><tr><td colspan="3">0.55% USD note due October 2025</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">4.10% USD note due January 2026</td><td colspan="3">650</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.70% USD note due February 2026</td><td colspan="3">600</td><td colspan="3"></td><td colspan="3">600</td></tr><tr><td colspan="3">1.00% USD note due April 2026</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">3.25% EUR note due August 2026</td><td colspan="3">707</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.45% USD note due November 2026</td><td colspan="3">875</td><td colspan="3"></td><td colspan="3">875</td></tr><tr><td colspan="3">1.90% USD note due February 2027 </td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">2.80% USD note due March 2027</td><td colspan="3">500</td><td colspan="3"></td><td colspan="3">500</td></tr><tr><td colspan="3">4.88% EUR note due May 2027</td><td colspan="3">1,087</td><td colspan="3"></td><td colspan="3">1,045</td></tr><tr><td colspan="3">2.85% USD note due August 2027</td><td colspan="3">750</td><td colspan="3"></td><td colspan="3">750</td></tr><tr><td colspan="3">3.95% USD note due January 2028</td><td colspan="3">600</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">1.20% EUR note due October 2028</td><td colspan="3">870</td><td colspan="3"></td><td colspan="3">836</td></tr><tr><td colspan="3">1.25% EUR note due October 2029</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">3.00% USD note due March 2030</td><td colspan="3">1,500</td><td colspan="3"></td><td colspan="3">1,500</td></tr><tr><td colspan="3">0.35% EUR note due May 2030</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">1.20% USD note due October 2030</td><td colspan="3">1,250</td><td colspan="3"></td><td colspan="3">1,250</td></tr><tr><td colspan="3">1.95% USD note due April 2031</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">3.25% EUR note due August 2031</td><td colspan="3">707</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.30% USD note due February 2032</td><td colspan="3">850</td><td colspan="3"></td><td colspan="3">850</td></tr><tr><td colspan="3">4.05% USD note due January 2033</td><td colspan="3">850</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">5.55% USD note due March 2037</td><td colspan="3">716</td><td colspan="3"></td><td colspan="3">716</td></tr><tr><td colspan="3">1.88% EUR note due October 2038</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">3.55% USD note due March 2040</td><td colspan="3">516</td><td colspan="3"></td><td colspan="3">516</td></tr><tr><td colspan="3">0.90% EUR note due November 2041</td><td colspan="3">652</td><td colspan="3"></td><td colspan="3">627</td></tr><tr><td colspan="3">All other long-term debt</td><td colspan="3">5,244</td><td colspan="3"></td><td colspan="3">7,196</td></tr><tr><td colspan="3">Current portion of long-term debt</td><td colspan="3">(3,951)</td><td colspan="3"></td><td colspan="3">(3,647)</td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td colspan="2">24,378</td><td colspan="3"></td><td>$</td><td colspan="2">22,848</td></tr><tr><td colspan="3">Weighted average interest rate of long-term debt (1)</td><td colspan="3">2.9%</td><td colspan="3"></td><td colspan="3">2.2%</td></tr></table>(1)Weighted average interest rate of long-term debt includes the effects of interest rate swaps discussed in Note 9. Amounts in millions of dollars except per share amounts or as otherwise specified.
55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , 56 There were no realized gains or losses from sales of marketable securities in fiscal 2023 and 2022. Gains and losses are determined by specific identification. Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security's maturity date. The aggregate unrealized gains and losses on available for sale debt securities, net of tax effects, are classified in AOCI within stockholders' equity. Scheduled maturities of our marketable securities are as follows: Marketable Securities In Millions Cost Fair Value Under 1 year (current) $ 2.3 $ 2.3 Equity securities 117.5 122.7 Total $ 119.8 $ 125.0 As of May 28, 2023, we had $ 2.2 million of marketable debt securities pledged as collateral for derivative contracts. RISK MANAGEMENT ACTIVITIES As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates and commodity and equity prices. To manage these risks, we may enter into various derivative transactions (e.g., futures, options, and swaps) pursuant to our established policies. COMMODITY PRICE RISK Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close as possible to or below our planned cost. We use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded currently in cost of sales in our Consolidated Statements of Earnings. Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. Unallocated corporate items for fiscal 2023, 2022, and 2021 included: Fiscal Year In Millions 2023 2022 2021 Net (loss) gain on mark-to-market valuation of commodity positions $ (154.4) $ 303.3 $ 138.2 Net gain on commodity positions reclassified from unallocated corporate items to segment operating profit (89.5) (188.0) (8.8) Net mark-to-market revaluation of certain grain inventories (48.0) 17.8 9.4 Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items $ (291.9) $ 133.1 $ 138.8 , 57 As of May 28, 2023, the net notional value of commodity derivatives was $ 406.8 million, of which $ 257.9 million related to agricultural inputs and $ 148.9 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. INTEREST RATE RISK We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. Primary exposures include U.S. Treasury rates, SOFR, Euribor, and commercial paper rates in the United States and Europe. We use interest rate swaps, forward-starting interest rate swaps, and treasury locks to hedge our exposure to interest rate changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt, based on current and projected market conditions. Generally under these swaps, we agree with a counterparty to exchange the difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount. Floating Interest Rate Exposures - Floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified into earnings over the life of the associated debt. Fixed Interest Rate Exposures - Fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness assessed based on changes in the fair value of the underlying debt and derivatives, using incremental borrowing rates currently available on loans with similar terms and maturities. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into € 750.0 million of forward-starting swaps. The forward-starting swap agreements were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a € 750.0 million 6 -year fixed-rate note. Upon termination, a loss of $ 5.0 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into $ 500.0 million of treasury locks. The treasury locks were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company's issuance of a $ 1,000.0 million 10 -year fixed-rate note. Upon termination, a loss of $ 1.4 million was recognized in AOCI and will be amortized through interest expense over the respective term of the debt. During the second quarter of fiscal 2023, we entered into a $ 500.0 million notional amount interest swap to convert our $ 500.0 million fixed rate notes due November 18, 2025 , to a floating rate. As of May 28, 2023, the pre-tax amount of cash-settled interest rate hedge gain or loss remaining in AOCI, which will be reclassified to earnings over the remaining term of the related underlying debt, follows: In Millions Gain/(Loss) 3.65 % notes due February 15, 2024 $ 1.3 4.0 % notes due April 17, 2025 (1.1) 3.2 % notes due February 10, 2027 6.3 1.5 % notes due April 27, 2027 (1.3) 4.2 % notes due April 17, 2028 (5.0) 3.907 % notes due April 13, 2029 (4.9) 2.25 % notes due October 14, 2031 16.5 4.95 % notes due March 29, 2033 (1.4) 4.55 % notes due April 17, 2038 (8.1) 5.4 % notes due June 15, 2040 (9.5) 4.15 % notes due February 15, 2043 7.8 4.7 % notes due April 17, 2048 (11.8) Net pre-tax hedge loss in AOCI $ (11.2) , 58 The following table summarizes the notional amounts and weighted-average interest rates of our interest rate derivatives. Average floating rates are based on rates as of the end of the reporting period. In Millions May 28, 2023 May 29, 2022 Pay-floating swaps - notional amount $ 1,143.4 $ 644.1 Average receive rate 2.6 % 0.4 % Average pay rate 2.5 % 0.1 % The floating-rate swap contracts outstanding as of May 28, 2023, mature in fiscal 2026 . FOREIGN EXCHANGE RISK Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency cash flows related to third party purchases, intercompany loans, product shipments, and foreign-denominated debt. We are also exposed to the translation of foreign currency earnings to the U.S. dollar. Our principal exposures are to the Australian dollar, Brazilian real, British pound sterling, Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. We primarily use foreign currency forward contracts to selectively hedge our foreign currency cash flow exposures. We also generally swap our foreign-denominated commercial paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with foreign exchange exposure. The gains or losses on these derivatives offset the foreign currency revaluation gains or losses recorded in earnings on the associated borrowings. We generally do not hedge more than 18 months in advance. As of May 28, 2023, the net notional value of foreign exchange derivatives was $ 933.0 million. We also have net investments in foreign subsidiaries that are denominated in euros. We hedged a portion of these net investments by issuing euro-denominated commercial paper and foreign exchange forward contracts. As of May 28, 2023, we hedged a portion of these net investments with € 2,949.9 million of euro denominated bonds. As of May 28, 2023, we had deferred net foreign currency transaction gains of $ 71.9 million in AOCI associated with net investment hedging activity. EQUITY INSTRUMENTS Equity price movements affect our compensation expense as certain investments made by our employees in our deferred compensation plan are revalued. We use equity swaps to manage this risk. As of May 28, 2023, the net notional amount of our equity swaps was $ 177.5 million. In fiscal 2024, $ 165.4 million of swap contracts will mature, and $ 12.1 million of swap contracts mature in fiscal 2025. , 59 FAIR VALUE MEASUREMENTS AND FINANCIAL STATEMENT PRESENTATION The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value hierarchy as of May 28, 2023, and May 29, 2022, were as follows: May 28, 2023 May 28, 2023 Fair Values of Assets Fair Values of Liabilities In Millions Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivatives designated as hedging instruments: Interest rate contracts (a) (b) $ - $ - $ - $ - $ - $ (62.2) $ - $ (62.2) Foreign exchange contracts (a) (c) - 10.3 - 10.3 - (2.5) - (2.5) Total - 10.3 - 10.3 - (64.7) - (64.7) Derivatives not designated as hedging instruments: Foreign exchange contracts (a) (c) - 0.2 - 0.2 - (5.6) - (5.6) Commodity contracts (a) (d) - 0.5 - 0.5 - (29.3) - (29.3) Grain contracts (a) (d) - 2.3 - 2.3 - (11.8) - (11.8) Total - 3.0 - 3.0 - (46.7) - (46.7) Other assets and liabilities reported at fair value: Marketable investments (a) (e) (f) 122.7 2.3 34.8 159.8 - - - - Long-lived assets (g) - 1.0 - 1.0 - - - - Total 122.7 3.3 34.8 160.8 - - - - Total assets, liabilities, and derivative positions recorded at fair value $ 122.7 $ 16.6 $ 34.8 $ 174.1 $ - $ (111.4) $ - $ (111.4) (a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash and cash equivalents. (b) Based on EURIBOR and swap rates. As of May 28, 2023, the carrying amount of hedged debt designated as the hedged item in a fair value hedge was $ 589.7 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 28, 2023, the cumulative amount of fair value hedging basis adjustments was $ 53.7 million. (c) Based on observable market transactions of spot currency rates and forward currency prices. (d) Based on prices of futures exchanges and recently reported transactions in the marketplace. (e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing. (f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2023, we recorded an impairment charge of $ 32.4 million resulting from the determination of fair value utilizing level 3 inputs including revised projections of future operating results and observable transaction data for similar instruments. (g) We recorded $ 8.6 million in non-cash impairment charges in fiscal 2023 to write down certain long-lived assets to their fair value. Fair value was based on recently reported transactions for similar assets in the marketplace. These assets had a carrying value of $ 9.6 million and were associated with the restructuring actions described in Note 4. , 56 The Procter & Gamble Company Our ESOP accounting practices are consistent with current ESOP accounting guidance, including the permissible continuation of certain provisions from prior accounting guidance. ESOP debt, which was guaranteed by the Company, was recorded as debt with an offset to the Reserve for ESOP debt retirement, which is presented within Shareholders' equity. Advances to the ESOP by the Company are recorded as an increase in the Reserve for ESOP debt retirement. Interest incurred on the ESOP debt was recorded as Interest expense. Dividends on all preferred shares are charged to Retained earnings. The series A and B preferred shares of the ESOP are allocated to employees based on debt service requirements. The number of preferred shares outstanding at June 30 was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Shares in thousands</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Allocated</td><td colspan="2">24,449 </td><td></td><td colspan="3"></td><td colspan="2">25,901 </td><td></td><td colspan="3"></td><td colspan="2">27,759 </td><td></td></tr><tr><td colspan="3">Unallocated</td><td colspan="2">535 </td><td></td><td colspan="3"></td><td colspan="2">1,123 </td><td></td><td colspan="3"></td><td colspan="2">1,769 </td><td></td></tr><tr><td colspan="3">TOTAL SERIES A</td><td colspan="2">24,984 </td><td></td><td colspan="3"></td><td colspan="2">27,024 </td><td></td><td colspan="3"></td><td colspan="2">29,528 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="6"></td><td colspan="6"></td></tr><tr><td colspan="3">Allocated</td><td colspan="2">32,172 </td><td></td><td colspan="3"></td><td colspan="2">30,719 </td><td></td><td colspan="3"></td><td colspan="2">29,203 </td><td></td></tr><tr><td colspan="3">Unallocated</td><td colspan="2">17,867 </td><td></td><td colspan="3"></td><td colspan="2">20,120 </td><td></td><td colspan="3"></td><td colspan="2">22,349 </td><td></td></tr><tr><td colspan="3">TOTAL SERIES B</td><td colspan="2">50,039 </td><td></td><td colspan="3"></td><td colspan="2">50,839 </td><td></td><td colspan="3"></td><td colspan="2">51,552 </td><td></td></tr></table> For purposes of calculating diluted net earnings per common share, the preferred shares held by the ESOP are considered converted from inception. NOTE 9 RISK MANAGEMENT ACTIVITIES AND FAIR VALUE MEASUREMENTS As a multinational company with diverse product offerings, we are exposed to market risks, such as changes in interest rates, currency exchange rates and commodity prices. We evaluate exposures on a centralized basis to take advantage of natural exposure correlation and netting. To the extent we choose to manage volatility associated with the net exposures, we enter into various financial transactions that we account for using the applicable accounting guidance for derivative instruments and hedging activities. These financial transactions are governed by our policies covering acceptable counterparty exposure, instrument types and other hedging practices. If the Company elects to do so and if the instrument meets certain specified accounting criteria, management designates derivative instruments as cash flow hedges, fair value hedges or net investment hedges. We record derivative instruments at fair value and the accounting for changes in the fair value depends on the intended use of the derivative, the resulting designation and the effectiveness of the instrument in offsetting the risk exposure it is designed to hedge. We generally have a high degree of effectiveness between the exposure being hedged and the hedging instrument. Credit Risk Management We have counterparty credit guidelines and normally enter into transactions with investment grade financial institutions, to the extent commercially viable. Counterparty exposures are monitored daily and downgrades in counterparty credit ratings are reviewed on a timely basis. We have not incurred, and do not expect to incur, material credit losses on our risk management or other financial instruments. Substantially all of the Company's financial instruments used in hedging transactions are governed by industry standard netting and collateral agreements with counterparties. If the Company's credit rating were to fall below the levels stipulated in the agreements, the counterparties could demand either collateralization or termination of the arrangements. The aggregate fair value of the instruments covered by these contractual features that are in a net liability position was $1,088 and $219 as of June 30, 2023 and 2022, respectively. The Company has not been required to post collateral as a result of these contractual features. Interest Rate Risk Management Our policy is to manage interest cost using a mixture of fixed-rate and variable-rate debt. To manage this risk in a cost-efficient manner, we enter into interest rate swaps whereby we agree to exchange with the counterparty, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to a notional amount. We designate certain interest rate swaps on fixed rate debt that meet specific accounting criteria as fair value hedges. For fair value hedges, the changes in the fair value of both the hedging instruments and the underlying debt obligations are immediately recognized in earnings. Foreign Currency Risk Management We manufacture and sell our products and finance our operations in a number of countries throughout the world. As a result, we are exposed to movements in foreign currency exchange rates. We leverage the Company's diversified portfolio of exposures as a natural hedge. In certain cases, we enter into non-qualifying foreign currency contracts to hedge certain balance sheet items subject to revaluation. The change in fair value of these instruments and the underlying exposure are both immediately recognized in earnings. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 57 To manage exchange rate risk related to our intercompany financing, we primarily use forward contracts and currency swaps. The change in fair value of these non-qualifying instruments is immediately recognized in earnings, substantially offsetting the foreign currency mark-to-market impact of the related exposure. Net Investment Hedging We hedge certain net investment positions in foreign subsidiaries. To accomplish this, we either borrow directly in foreign currencies and designate all or a portion of the foreign currency debt as a hedge of the applicable net investment position or we enter into foreign currency swaps that are designated as hedges of net investments. The time value component of the net investment hedge currency swaps is excluded from the assessment of hedge effectiveness. Changes in the fair value of the swap, including changes in the fair value of the excluded time value component, are recognized in OCI and offset the value of the net investment being hedged. The time value component is subsequently reported in income on a systematic basis. Commodity Risk Management Certain raw materials used in our products or production processes are subject to price volatility caused by weather, supply conditions, political and economic variables and other unpredictable factors. As of and during the fiscal years ended June 30, 2023 and 2022, we did not have any financial commodity hedging activity. Insurance We self-insure for most insurable risks. However, we purchase insurance for Directors and Officers Liability and certain other coverage where it is required by law or by contract. Fair Value Hierarchy Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following categories: •Level 1: Quoted market prices in active markets for identical assets or liabilities. •Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. •Level 3: Unobservable inputs reflecting the reporting entity's own assumptions or external inputs from inactive markets. The Company had no significant activity with Level 3 assets and liabilities during the periods presented. When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company has not changed its valuation techniques used in measuring the fair value of any financial assets or liabilities during the year. When active market quotes are not available for financial assets and liabilities, we use industry standard valuation models. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including credit risk, interest rate curves and forward and spot prices for currencies. In circumstances where market-based observable inputs are not available, management judgment is used to develop assumptions to estimate fair value. Assets and Liabilities Measured at Fair Value Cash equivalents were $6.8 billion and $6.0 billion as of June 30, 2023 and 2022, respectively, and are classified as Level 1 within the fair value hierarchy. The Company had no other material investments in debt or equity securities during the periods presented. The fair value of long-term debt was $26.9 billion and $25.7 billion as of June 30, 2023 and 2022, respectively. This includes the current portion of long-term debt instruments ($3.9 billion as of June 30, 2023, and $3.6 billion as of June 30, 2022). Certain long-term debt (debt designated as a fair value hedge) is recorded at fair value. All other long-term debt is recorded at amortized cost but is measured at fair value for disclosure purposes. We consider our debt to be Level 2 in the fair value hierarchy. Fair values are generally estimated based on quoted market prices for identical or similar instruments. Amounts in millions of dollars except per share amounts or as otherwise specified. , 58 The Procter & Gamble Company Disclosures about Financial Instruments The notional amounts and fair values of financial instruments used in hedging transactions as of June 30, 2023 and 2022, are as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Notional Amount</td><td colspan="3"></td><td colspan="9">Fair Value Asset</td><td colspan="3"></td><td colspan="9">Fair Value (Liability)</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="18">DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest rate contracts</td><td>$</td><td>4,044 </td><td></td><td colspan="3"></td><td>$</td><td>4,972 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>(445)</td><td></td><td colspan="3"></td><td>$</td><td>(307)</td><td></td></tr><tr><td colspan="18">DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency interest rate contracts</td><td>$</td><td>11,005 </td><td></td><td colspan="3"></td><td>$</td><td>7,943 </td><td></td><td colspan="3"></td><td>$</td><td>26 </td><td></td><td colspan="3"></td><td>$</td><td>561 </td><td></td><td colspan="3"></td><td>$</td><td>(631)</td><td></td><td colspan="3"></td><td>$</td><td>(1)</td><td></td></tr><tr><td colspan="3">TOTAL DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS</td><td>$</td><td>15,049 </td><td></td><td colspan="3"></td><td>$</td><td>12,915 </td><td></td><td colspan="3"></td><td>$</td><td>26 </td><td></td><td colspan="3"></td><td>$</td><td>564 </td><td></td><td colspan="3"></td><td>$</td><td>(1,076)</td><td></td><td colspan="3"></td><td>$</td><td>(308)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency contracts</td><td>$</td><td>3,489 </td><td></td><td colspan="3"></td><td>$</td><td>5,625 </td><td></td><td colspan="3"></td><td>$</td><td>7 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>(42)</td><td></td><td colspan="3"></td><td>$</td><td>(61)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL DERIVATIVES AT FAIR VALUE</td><td>$</td><td>18,538 </td><td></td><td colspan="3"></td><td>$</td><td>18,540 </td><td></td><td colspan="3"></td><td>$</td><td>33 </td><td></td><td colspan="3"></td><td>$</td><td>570 </td><td></td><td colspan="3"></td><td>$</td><td>(1,118)</td><td></td><td colspan="3"></td><td>$</td><td>(369)</td><td></td></tr></table> The fair value of the interest rate derivative asset/liability directly offsets the cumulative amount of the fair value hedging adjustment included in the carrying amount of the underlying debt obligation. The carrying amount of the underlying debt obligation, which includes the unamortized discount or premium and the fair value adjustment, was $3.6 billion and $4.7 billion as of June 30, 2023 and 2022, respectively. In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The carrying value of those debt instruments designated as net investment hedges, which includes the adjustment for the foreign currency transaction gain or loss on those instruments, was $11.8 billion and $11.2 billion as of June 30, 2023 and 2022, respectively. The increase in the notional balance of derivative instruments designated as net investment hedges is primarily driven by the Company's decision to leverage favorable interest rate spreads in the foreign currency swap market. The decrease in the notional balance of foreign currency contracts not designated as hedging instruments reflects changes in the level of intercompany financing activity during the period. Derivative assets are presented in Prepaid expenses and other current assets or Other noncurrent assets. Derivative liabilities are presented in Accrued and other liabilities or Other noncurrent liabilities. Changes in the fair value of net investment hedges are recognized in the Foreign currency translation component of Other comprehensive income (OCI). All of the Company's derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. Before tax gains/(losses) on our financial instruments in hedging relationships are categorized as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Amount of Gain/(Loss) Recognized in OCI on Derivatives</td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DERIVATIVES IN NET INVESTMENT HEDGING RELATIONSHIPS (1) (2)</td></tr><tr><td colspan="3">Foreign currency interest rate contracts</td><td>$</td><td>(544)</td><td></td><td colspan="3"></td><td>$</td><td>1,033 </td><td></td></tr></table>(1)For the derivatives in net investment hedging relationships, the amount of gain excluded from effectiveness testing, which was recognized in earnings, was $238 and $73 for the fiscal years ended June 30, 2023 and 2022, respectively. (2)In addition to the foreign currency derivative contracts designated as net investment hedges, certain of our foreign currency denominated debt instruments are designated as net investment hedges. The amount of gain/(loss) recognized in AOCI for such instruments was $(315) and $1,639, for the fiscal years ended June 30, 2023 and 2022, respectively. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Amount of Gain/(Loss) Recognized in Earnings</td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DERIVATIVES IN FAIR VALUE HEDGING RELATIONSHIPS</td></tr><tr><td colspan="3">Interest rate contracts</td><td>$</td><td>(141)</td><td></td><td colspan="3"></td><td>$</td><td>(450)</td><td></td></tr><tr><td colspan="12">DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS</td></tr><tr><td colspan="3">Foreign currency contracts</td><td>$</td><td>(97)</td><td></td><td colspan="3"></td><td>$</td><td>(149)</td><td></td></tr></table>The loss on the derivatives in fair value hedging relationships is fully offset by the mark-to-market impact of the related exposure. These are both recognized in the Consolidated Statement of Earnings in Interest Expense. The loss on derivatives not designated as hedging instruments is substantially offset by the currency mark-to-market of the related exposure. These are both recognized in the Consolidated Statements of Earnings in SG&A. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 59 NOTE 10 SHORT-TERM AND LONG-TERM DEBT <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">DEBT DUE WITHIN ONE YEAR</td></tr><tr><td colspan="3">Current portion of long-term debt</td><td>$</td><td colspan="2">3,951</td><td colspan="3"></td><td>$</td><td colspan="2">3,647</td></tr><tr><td colspan="3">Commercial paper</td><td colspan="3">6,236</td><td colspan="3"></td><td colspan="3">4,805</td></tr><tr><td colspan="3">Other</td><td colspan="3">42</td><td colspan="3"></td><td colspan="3">193</td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td colspan="2">10,229</td><td colspan="3"></td><td>$</td><td colspan="2">8,645</td></tr><tr><td colspan="3">Weighted average interest rate of debt due within one year (1)</td><td colspan="2">4.2 </td><td>%</td><td colspan="3"></td><td colspan="2">0.8 </td><td>%</td></tr></table>(1)Weighted average interest rate of debt due within one year includes the effects of interest rate swaps discussed in Note 9. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">LONG-TERM DEBT</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">3.10% USD note due August 2023</td><td>$</td><td colspan="2">1,000</td><td colspan="3"></td><td>$</td><td colspan="2">1,000</td></tr><tr><td colspan="3">1.13% EUR note due November 2023</td><td colspan="3">1,359</td><td colspan="3"></td><td colspan="3">1,306</td></tr><tr><td colspan="3">0.50% EUR note due October 2024</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">0.63% EUR note due October 2024</td><td colspan="3">870</td><td colspan="3"></td><td colspan="3">836</td></tr><tr><td colspan="3">0.55% USD note due October 2025</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">4.10% USD note due January 2026</td><td colspan="3">650</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.70% USD note due February 2026</td><td colspan="3">600</td><td colspan="3"></td><td colspan="3">600</td></tr><tr><td colspan="3">1.00% USD note due April 2026</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">3.25% EUR note due August 2026</td><td colspan="3">707</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.45% USD note due November 2026</td><td colspan="3">875</td><td colspan="3"></td><td colspan="3">875</td></tr><tr><td colspan="3">1.90% USD note due February 2027 </td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">2.80% USD note due March 2027</td><td colspan="3">500</td><td colspan="3"></td><td colspan="3">500</td></tr><tr><td colspan="3">4.88% EUR note due May 2027</td><td colspan="3">1,087</td><td colspan="3"></td><td colspan="3">1,045</td></tr><tr><td colspan="3">2.85% USD note due August 2027</td><td colspan="3">750</td><td colspan="3"></td><td colspan="3">750</td></tr><tr><td colspan="3">3.95% USD note due January 2028</td><td colspan="3">600</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">1.20% EUR note due October 2028</td><td colspan="3">870</td><td colspan="3"></td><td colspan="3">836</td></tr><tr><td colspan="3">1.25% EUR note due October 2029</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">3.00% USD note due March 2030</td><td colspan="3">1,500</td><td colspan="3"></td><td colspan="3">1,500</td></tr><tr><td colspan="3">0.35% EUR note due May 2030</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">1.20% USD note due October 2030</td><td colspan="3">1,250</td><td colspan="3"></td><td colspan="3">1,250</td></tr><tr><td colspan="3">1.95% USD note due April 2031</td><td colspan="3">1,000</td><td colspan="3"></td><td colspan="3">1,000</td></tr><tr><td colspan="3">3.25% EUR note due August 2031</td><td colspan="3">707</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">2.30% USD note due February 2032</td><td colspan="3">850</td><td colspan="3"></td><td colspan="3">850</td></tr><tr><td colspan="3">4.05% USD note due January 2033</td><td colspan="3">850</td><td colspan="3"></td><td colspan="3">-</td></tr><tr><td colspan="3">5.55% USD note due March 2037</td><td colspan="3">716</td><td colspan="3"></td><td colspan="3">716</td></tr><tr><td colspan="3">1.88% EUR note due October 2038</td><td colspan="3">544</td><td colspan="3"></td><td colspan="3">523</td></tr><tr><td colspan="3">3.55% USD note due March 2040</td><td colspan="3">516</td><td colspan="3"></td><td colspan="3">516</td></tr><tr><td colspan="3">0.90% EUR note due November 2041</td><td colspan="3">652</td><td colspan="3"></td><td colspan="3">627</td></tr><tr><td colspan="3">All other long-term debt</td><td colspan="3">5,244</td><td colspan="3"></td><td colspan="3">7,196</td></tr><tr><td colspan="3">Current portion of long-term debt</td><td colspan="3">(3,951)</td><td colspan="3"></td><td colspan="3">(3,647)</td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td colspan="2">24,378</td><td colspan="3"></td><td>$</td><td colspan="2">22,848</td></tr><tr><td colspan="3">Weighted average interest rate of long-term debt (1)</td><td colspan="3">2.9%</td><td colspan="3"></td><td colspan="3">2.2%</td></tr></table>(1)Weighted average interest rate of long-term debt includes the effects of interest rate swaps discussed in Note 9. Amounts in millions of dollars except per share amounts or as otherwise specified.
q_com071
Compare the restructuring or impairment charges of General Mills and The Procter & Gamble Company for the fiscal year 2023.
General Mills reported total restructuring charges of $61.0 million for fiscal year 2023, including $36.2 million for global supply chain actions, $6.4 million for network optimization actions, and $18.4 million for charges associated with previously announced restructuring actions. The company also recognized $25.8 million of severance and $10.4 million of other costs related to these actions. The Procter & Gamble Company reported total restructuring charges of $329 million for fiscal year 2023, including $160 million recorded in Costs of products sold, $160 million in SG&A, and $9 million in Other non-operating income, net. The restructuring charges included costs for employee separations, asset-related costs, and other restructuring-type charges. P&G's restructuring charges are significantly higher than those of General Mills, reflecting more extensive restructuring activities to maintain a competitive cost structure. P&G's restructuring costs are also more diversified across different expense categories.
Comparison
51, 52;44, 45, 46
0001193125-23-177500;0000080424-23-000073
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 51: 51 NOTE 4. RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS We view our restructuring activities as actions that help us meet our long-term growth targets and are evaluated against internal rate of return and net present value targets. Each restructuring action normally takes one to two years to complete. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. These activities result in various restructuring costs, including asset write-offs, exit charges including severance, contract termination fees, and decommissioning and other costs. Accelerated depreciation associated with restructured assets, as used in the context of our disclosures regarding restructuring activity, refers to the increase in depreciation expense caused by shortening the useful life or updating the salvage value of depreciable fixed assets to coincide with the end of production under an approved restructuring plan. Any impairment of the asset is recognized immediately in the period the plan is approved. Restructuring charges recorded in fiscal 2023 were as follows: Expense, in Millions Global supply chain actions $ 36.2 Network optimization actions 6.4 Charges associated with restructuring actions previously announced 18.4 Total restructuring charges $ 61.0 In fiscal 2023, we approved restructuring actions to enhance the efficiency of our global supply chain structure. We expect to incur approximately $ 52 million of restructuring charges and project-related costs related to these actions, of which approximately $ 35 million will be cash. These charges are expected to consist of approximately $ 26 million of severance and $ 26 million of other costs, primarily $ 8 million of asset impairment and $ 11 million of other asset write-offs. We recognized $ 25.8 million of severance and $ 10.4 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2025. In fiscal 2023, we approved restructuring actions in our International segment to optimize our Häagen-Dazs shops network. We expect to incur approximately $ 10 million of restructuring charges and project-related costs related to these actions, of which approximately $ 9 million will be cash. These charges are expected to consist of approximately $ 6 million of severance and $ 4 million of other costs. We recognized $ 5.6 million of severance and $ 0.8 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2024 . Certain actions are subject to union negotiations and works counsel consultations, where required. We paid net $ 36.6 million of cash related to restructuring actions in fiscal 2023. We paid net $ 93.9 million of cash in fiscal 2022. Restructuring charges recorded in fiscal 2022 were as follows: Expense, in Millions International manufacturing and logistics operations $ 15.0 Net recoveries associated with restructuring actions previously announced (38.2) Total net restructuring recoveries $ (23.2) Restructuring charges recorded in fiscal 2021 were as follows: Expense, in Millions Global organizational structure and resource alignment $ 157.3 International route-to-market and supply chain optimization 13.0 Charges associated with restructuring actions previously announced 2.4 Total restructuring charges $ 172.7 , GENERAL MILLS INC 10-K form, page 52: 52 Restructuring and impairment charges and project-related costs are classified in our Consolidated Statements of Earnings as follows: Fiscal Year In Millions 2023 2022 2021 Restructuring, impairment, and other exit costs (recoveries) $ 56.2 $ (26.5) $ 170.4 Cost of sales 4.8 3.3 2.3 Total restructuring and impairment charges (recoveries) 61.0 (23.2) 172.7 Project-related costs classified in cost of sales $ 2.4 $ - $ - The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: In Millions Severance Other Exit Costs Total Reserve balance as of May 31, 2020 $ 17.8 $ - $ 17.8 Fiscal 2021 charges, including foreign currency translation 142.3 1.6 143.9 Utilized in fiscal 2021 (12.8) (0.1) (12.9) Reserve balance as of May 30, 2021 147.3 1.5 148.8 Fiscal 2022 charges, including foreign currency translation 2.2 1.2 3.4 Reserve adjustment (34.0) - (34.0) Utilized in fiscal 2022 (80.1) (1.3) (81.4) Reserve balance as of May 29, 2022 35.4 1.4 36.8 Fiscal 2023 charges, including foreign currency translation 41.6 0.1 41.7 Utilized in fiscal 2023 (29.4) (1.4) (30.8) Reserve balance as of May 28, 2023 $ 47.6 $ 0.1 $ 47.7 The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES We have a 50 percent interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in approximately 130 countries outside the United States and Canada. CPW also markets cereal bars in European countries and manufactures private label cereals for customers in the United Kingdom. We have guaranteed a portion of CPW's debt and its pension obligation in the United Kingdom. We also have a 50 percent interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures and markets Häagen-Dazs ice cream products and frozen novelties. Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31. Joint venture related balance sheet activity is as follows: In Millions May 28, 2023 May 29, 2022 Cumulative investments $ 401.5 $ 416.4 Goodwill and other intangibles 444.1 444.9 Aggregate advances included in cumulative investments 275.6 254.4 , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 44: 44 The Procter & Gamble Company NOTE 3 SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows: | | | | | | | | | |---:|:------------------------------------|:---------|:-------|:-----|:---------|:---|:-------| | 1 | As of June 30 | 2023 | | 2022 | | | | | 2 | PROPERTY, PLANT AND EQUIPMENT | | | | | | | | 3 | Buildings | $ | 8,277 | | | $ | 8,087 | | 4 | Machinery and equipment | 36,521 | | | 35,098 | | | | 5 | Land | 867 | | | 756 | | | | 6 | Construction in progress | 2,980 | | | 2,756 | | | | 7 | TOTAL PROPERTY, PLANT AND EQUIPMENT | 48,645 | | | 46,697 | | | | 8 | Accumulated depreciation | (26,736) | | | (25,502) | | | | 9 | PROPERTY, PLANT AND EQUIPMENT, NET | $ | 21,909 | | | $ | 21,195 | Selected components of current and noncurrent liabilities were as follows:| | | | | | | | | |---:|:----------------------------------------|:------|:-------|:-----|:------|:---|:------| | 1 | As of June 30 | 2023 | | 2022 | | | | | 2 | ACCRUED AND OTHER LIABILITIES - CURRENT | | | | | | | | 3 | Marketing and promotion | $ | 3,894 | | | $ | 3,878 | | 4 | Compensation expenses | 2,030 | | | 1,797 | | | | 5 | Taxes payable | 828 | | | 587 | | | | 6 | Derivative liabilities | 631 | | | 1 | | | | 7 | Leases | 222 | | 205 | | | | | 8 | Restructuring reserves | 174 | | | 147 | | | | 9 | Other | 3,150 | | | 2,939 | | | | 10 | TOTAL | $ | 10,929 | | | $ | 9,554 | | 12 | OTHER NONCURRENT LIABILITIES | | | | | | | | 13 | Pension benefits | $ | 3,116 | | | $ | 3,139 | | 14 | U.S. Tax Act transitional tax payable | 1,154 | | | 1,661 | | | | 15 | Other retiree benefits | 690 | | | 672 | | | | 16 | Uncertain tax positions | 622 | | | 752 | | | | 17 | Long term operating leases | 595 | | | 595 | | | | 18 | Derivative liabilities | 445 | | | 307 | | | | 19 | Other | 530 | | | 490 | | | | 20 | TOTAL | $ | 7,152 | | | $ | 7,616 | RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 45: The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: | | | | | | | | | | | | |---:|:-------------------------------------|:------------|:--------------------|:------|:------|:------|:------|:----|:---|:----| | 1 | | Separations | Asset-Related Costs | Other | Total | | | | | | | 2 | RESERVE JUNE 30, 2021 | $ | 176 | | $ | - | $ | 102 | $ | 278 | | 3 | Cost incurred and charged to expense | 88 | | 87 | | 78 | 253 | | | | | 4 | Cost paid/settled | (143) | | (87) | | (154) | (384) | | | | | 5 | RESERVE JUNE 30, 2022 | 121 | | - | | 26 | 147 | | | | | 6 | Cost incurred and charged to expense | 175 | | 43 | | 111 | 329 | | | | | 7 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | | | 8 | RESERVE JUNE 30, 2023 | $ | 155 | | $ | - | $ | 19 | $ | 174 | Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: | | | | | | | | | | |---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | 2022 | 2021 | | | | | | 2 | Beauty | $ | 15 | | $ | 11 | $ | 13 | | 3 | Grooming | 17 | | 14 | | 25 | | | | 4 | Health Care | 28 | | 32 | | 51 | | | | 5 | Fabric & Home Care | 87 | | 42 | | 22 | | | | 6 | Baby, Feminine & Family Care | 21 | | 83 | | 29 | | | | 7 | Corporate (1) | 161 | | 71 | | 190 | | | | 8 | Total Company | $ | 329 | | $ | 253 | $ | 330 | (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------|:-------|:---------|:------------|:-------------------|:-----------------------------|:--------------|:------|:------|:------|:---|:--------|:---|:------|:---|:-------| | 1 | | Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | | | | | | | | | | | 2 | Balance at June 30, 2021 - Net (1) | $ | 13,257 | | $ | 13,095 | | $ | 8,046 | | $ | 1,873 | $ | 4,653 | $ | 40,924 | | 3 | Acquisitions and divestitures | 781 | | - | | 1 | | - | | - | | 782 | | | | | | 4 | Translation and other | (742) | | (524) | | (458) | | (65) | | (217) | | (2,006) | | | | | | 5 | Balance at June 30, 2022 - Net (1) | 13,296 | | 12,571 | | 7,589 | | 1,808 | | 4,436 | | 39,700 | | | | | | 6 | Acquisitions and divestitures | 405 | | - | | - | | - | | 33 | | 438 | | | | | | 7 | Translation and other | 187 | | 132 | | 129 | | 13 | | 60 | | 521 | | | | | | 8 | Balance at June 30, 2023 - Net (1) | $ | 13,888 | | $ | 12,703 | | $ | 7,718 | | $ | 1,821 | $ | 4,529 | $ | 40,659 | (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 46: 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: | | | | | | | | | | | | | |---:|:------------------------------------------|:----------------------|:------------------------|:--------|:----------------------|:------------------------|:-------|:--------|:-------|:---|:--------| | 1 | | 2023 | | 2022 | | | | | | | | | 2 | As of June 30 | Gross Carrying Amount | AccumulatedAmortization | | Gross Carrying Amount | AccumulatedAmortization | | | | | | | 3 | INTANGIBLE ASSETS WITH DETERMINABLE LIVES | | | | | | | | | | | | 4 | Brands | $ | 4,352 | | $ | (2,540) | | $ | 4,299 | $ | (2,628) | | 5 | Patents and technology | 2,775 | | (2,649) | | | 2,769 | (2,609) | | | | | 6 | Customer relationships | 1,847 | | (1,039) | | | 1,797 | (939) | | | | | 7 | Other | 73 | | (28) | | | 147 | (97) | | | | | 8 | TOTAL | $ | 9,047 | | $ | (6,256) | | $ | 9,012 | $ | (6,273) | | 10 | INTANGIBLE ASSETS WITH INDEFINITE LIVES | | | | | | | | | | | | 11 | Brands | 20,992 | | - | | | 20,940 | - | | | | | 13 | TOTAL INTANGIBLE ASSETS | $ | 30,039 | | $ | (6,256) | | $ | 29,952 | $ | (6,273) | Amortization expense of intangible assets was as follows: | | | | | | | | | | |---:|:------------------------------|:-----|:----|:-----|:-----|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | 2021 | | | | | 2 | Intangible asset amortization | $ | 327 | | $ | 312 | $ | 318 | Estimated amortization expense over the next five fiscal years is as follows: | | | | | | | | | | | | | | |---:|:-------------------------------|:-----|-----:|:-----|:-----|-----:|:---|:----|:---|:----|:---|:----| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | | | | | | | 2 | Estimated amortization expense | $ | 340 | | $ | 320 | $ | 297 | $ | 287 | $ | 247 | NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: | | | | | | | | | | | | |---:|:---------------------------|:------|:-------|:-----|:------|:-----|:-------|:------|:---|:-------| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | United States | $ | 12,107 | | | $ | 11,698 | | $ | 10,858 | | 3 | International | 6,246 | | | 6,297 | | | 6,757 | | | | 4 | TOTAL | $ | 18,353 | | | $ | 17,995 | | $ | 17,615 | Amounts in millions of dollars except per share amounts or as otherwise specified.
51 NOTE 4. RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS We view our restructuring activities as actions that help us meet our long-term growth targets and are evaluated against internal rate of return and net present value targets. Each restructuring action normally takes one to two years to complete. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. These activities result in various restructuring costs, including asset write-offs, exit charges including severance, contract termination fees, and decommissioning and other costs. Accelerated depreciation associated with restructured assets, as used in the context of our disclosures regarding restructuring activity, refers to the increase in depreciation expense caused by shortening the useful life or updating the salvage value of depreciable fixed assets to coincide with the end of production under an approved restructuring plan. Any impairment of the asset is recognized immediately in the period the plan is approved. Restructuring charges recorded in fiscal 2023 were as follows: Expense, in Millions Global supply chain actions $ 36.2 Network optimization actions 6.4 Charges associated with restructuring actions previously announced 18.4 Total restructuring charges $ 61.0 In fiscal 2023, we approved restructuring actions to enhance the efficiency of our global supply chain structure. We expect to incur approximately $ 52 million of restructuring charges and project-related costs related to these actions, of which approximately $ 35 million will be cash. These charges are expected to consist of approximately $ 26 million of severance and $ 26 million of other costs, primarily $ 8 million of asset impairment and $ 11 million of other asset write-offs. We recognized $ 25.8 million of severance and $ 10.4 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2025. In fiscal 2023, we approved restructuring actions in our International segment to optimize our Häagen-Dazs shops network. We expect to incur approximately $ 10 million of restructuring charges and project-related costs related to these actions, of which approximately $ 9 million will be cash. These charges are expected to consist of approximately $ 6 million of severance and $ 4 million of other costs. We recognized $ 5.6 million of severance and $ 0.8 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2024 . Certain actions are subject to union negotiations and works counsel consultations, where required. We paid net $ 36.6 million of cash related to restructuring actions in fiscal 2023. We paid net $ 93.9 million of cash in fiscal 2022. Restructuring charges recorded in fiscal 2022 were as follows: Expense, in Millions International manufacturing and logistics operations $ 15.0 Net recoveries associated with restructuring actions previously announced (38.2) Total net restructuring recoveries $ (23.2) Restructuring charges recorded in fiscal 2021 were as follows: Expense, in Millions Global organizational structure and resource alignment $ 157.3 International route-to-market and supply chain optimization 13.0 Charges associated with restructuring actions previously announced 2.4 Total restructuring charges $ 172.7 , 52 Restructuring and impairment charges and project-related costs are classified in our Consolidated Statements of Earnings as follows: Fiscal Year In Millions 2023 2022 2021 Restructuring, impairment, and other exit costs (recoveries) $ 56.2 $ (26.5) $ 170.4 Cost of sales 4.8 3.3 2.3 Total restructuring and impairment charges (recoveries) 61.0 (23.2) 172.7 Project-related costs classified in cost of sales $ 2.4 $ - $ - The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: In Millions Severance Other Exit Costs Total Reserve balance as of May 31, 2020 $ 17.8 $ - $ 17.8 Fiscal 2021 charges, including foreign currency translation 142.3 1.6 143.9 Utilized in fiscal 2021 (12.8) (0.1) (12.9) Reserve balance as of May 30, 2021 147.3 1.5 148.8 Fiscal 2022 charges, including foreign currency translation 2.2 1.2 3.4 Reserve adjustment (34.0) - (34.0) Utilized in fiscal 2022 (80.1) (1.3) (81.4) Reserve balance as of May 29, 2022 35.4 1.4 36.8 Fiscal 2023 charges, including foreign currency translation 41.6 0.1 41.7 Utilized in fiscal 2023 (29.4) (1.4) (30.8) Reserve balance as of May 28, 2023 $ 47.6 $ 0.1 $ 47.7 The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES We have a 50 percent interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in approximately 130 countries outside the United States and Canada. CPW also markets cereal bars in European countries and manufactures private label cereals for customers in the United Kingdom. We have guaranteed a portion of CPW's debt and its pension obligation in the United Kingdom. We also have a 50 percent interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures and markets Häagen-Dazs ice cream products and frozen novelties. Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31. Joint venture related balance sheet activity is as follows: In Millions May 28, 2023 May 29, 2022 Cumulative investments $ 401.5 $ 416.4 Goodwill and other intangibles 444.1 444.9 Aggregate advances included in cumulative investments 275.6 254.4 , 44 The Procter & Gamble Company NOTE 3 SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows: | | | | | | | | | |---:|:------------------------------------|:---------|:-------|:-----|:---------|:---|:-------| | 1 | As of June 30 | 2023 | | 2022 | | | | | 2 | PROPERTY, PLANT AND EQUIPMENT | | | | | | | | 3 | Buildings | $ | 8,277 | | | $ | 8,087 | | 4 | Machinery and equipment | 36,521 | | | 35,098 | | | | 5 | Land | 867 | | | 756 | | | | 6 | Construction in progress | 2,980 | | | 2,756 | | | | 7 | TOTAL PROPERTY, PLANT AND EQUIPMENT | 48,645 | | | 46,697 | | | | 8 | Accumulated depreciation | (26,736) | | | (25,502) | | | | 9 | PROPERTY, PLANT AND EQUIPMENT, NET | $ | 21,909 | | | $ | 21,195 | Selected components of current and noncurrent liabilities were as follows:| | | | | | | | | |---:|:----------------------------------------|:------|:-------|:-----|:------|:---|:------| | 1 | As of June 30 | 2023 | | 2022 | | | | | 2 | ACCRUED AND OTHER LIABILITIES - CURRENT | | | | | | | | 3 | Marketing and promotion | $ | 3,894 | | | $ | 3,878 | | 4 | Compensation expenses | 2,030 | | | 1,797 | | | | 5 | Taxes payable | 828 | | | 587 | | | | 6 | Derivative liabilities | 631 | | | 1 | | | | 7 | Leases | 222 | | 205 | | | | | 8 | Restructuring reserves | 174 | | | 147 | | | | 9 | Other | 3,150 | | | 2,939 | | | | 10 | TOTAL | $ | 10,929 | | | $ | 9,554 | | 12 | OTHER NONCURRENT LIABILITIES | | | | | | | | 13 | Pension benefits | $ | 3,116 | | | $ | 3,139 | | 14 | U.S. Tax Act transitional tax payable | 1,154 | | | 1,661 | | | | 15 | Other retiree benefits | 690 | | | 672 | | | | 16 | Uncertain tax positions | 622 | | | 752 | | | | 17 | Long term operating leases | 595 | | | 595 | | | | 18 | Derivative liabilities | 445 | | | 307 | | | | 19 | Other | 530 | | | 490 | | | | 20 | TOTAL | $ | 7,152 | | | $ | 7,616 | RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: | | | | | | | | | | | | |---:|:-------------------------------------|:------------|:--------------------|:------|:------|:------|:------|:----|:---|:----| | 1 | | Separations | Asset-Related Costs | Other | Total | | | | | | | 2 | RESERVE JUNE 30, 2021 | $ | 176 | | $ | - | $ | 102 | $ | 278 | | 3 | Cost incurred and charged to expense | 88 | | 87 | | 78 | 253 | | | | | 4 | Cost paid/settled | (143) | | (87) | | (154) | (384) | | | | | 5 | RESERVE JUNE 30, 2022 | 121 | | - | | 26 | 147 | | | | | 6 | Cost incurred and charged to expense | 175 | | 43 | | 111 | 329 | | | | | 7 | Cost paid/settled | (141) | | (43) | | (118) | (302) | | | | | 8 | RESERVE JUNE 30, 2023 | $ | 155 | | $ | - | $ | 19 | $ | 174 | Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: | | | | | | | | | | |---:|:-----------------------------|:-----|:-----|:-----|:---|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | 2022 | 2021 | | | | | | 2 | Beauty | $ | 15 | | $ | 11 | $ | 13 | | 3 | Grooming | 17 | | 14 | | 25 | | | | 4 | Health Care | 28 | | 32 | | 51 | | | | 5 | Fabric & Home Care | 87 | | 42 | | 22 | | | | 6 | Baby, Feminine & Family Care | 21 | | 83 | | 29 | | | | 7 | Corporate (1) | 161 | | 71 | | 190 | | | | 8 | Total Company | $ | 329 | | $ | 253 | $ | 330 | (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------|:-------|:---------|:------------|:-------------------|:-----------------------------|:--------------|:------|:------|:------|:---|:--------|:---|:------|:---|:-------| | 1 | | Beauty | Grooming | Health Care | Fabric & Home Care | Baby, Feminine & Family Care | Total Company | | | | | | | | | | | 2 | Balance at June 30, 2021 - Net (1) | $ | 13,257 | | $ | 13,095 | | $ | 8,046 | | $ | 1,873 | $ | 4,653 | $ | 40,924 | | 3 | Acquisitions and divestitures | 781 | | - | | 1 | | - | | - | | 782 | | | | | | 4 | Translation and other | (742) | | (524) | | (458) | | (65) | | (217) | | (2,006) | | | | | | 5 | Balance at June 30, 2022 - Net (1) | 13,296 | | 12,571 | | 7,589 | | 1,808 | | 4,436 | | 39,700 | | | | | | 6 | Acquisitions and divestitures | 405 | | - | | - | | - | | 33 | | 438 | | | | | | 7 | Translation and other | 187 | | 132 | | 129 | | 13 | | 60 | | 521 | | | | | | 8 | Balance at June 30, 2023 - Net (1) | $ | 13,888 | | $ | 12,703 | | $ | 7,718 | | $ | 1,821 | $ | 4,529 | $ | 40,659 | (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: | | | | | | | | | | | | | |---:|:------------------------------------------|:----------------------|:------------------------|:--------|:----------------------|:------------------------|:-------|:--------|:-------|:---|:--------| | 1 | | 2023 | | 2022 | | | | | | | | | 2 | As of June 30 | Gross Carrying Amount | AccumulatedAmortization | | Gross Carrying Amount | AccumulatedAmortization | | | | | | | 3 | INTANGIBLE ASSETS WITH DETERMINABLE LIVES | | | | | | | | | | | | 4 | Brands | $ | 4,352 | | $ | (2,540) | | $ | 4,299 | $ | (2,628) | | 5 | Patents and technology | 2,775 | | (2,649) | | | 2,769 | (2,609) | | | | | 6 | Customer relationships | 1,847 | | (1,039) | | | 1,797 | (939) | | | | | 7 | Other | 73 | | (28) | | | 147 | (97) | | | | | 8 | TOTAL | $ | 9,047 | | $ | (6,256) | | $ | 9,012 | $ | (6,273) | | 10 | INTANGIBLE ASSETS WITH INDEFINITE LIVES | | | | | | | | | | | | 11 | Brands | 20,992 | | - | | | 20,940 | - | | | | | 13 | TOTAL INTANGIBLE ASSETS | $ | 30,039 | | $ | (6,256) | | $ | 29,952 | $ | (6,273) | Amortization expense of intangible assets was as follows: | | | | | | | | | | |---:|:------------------------------|:-----|:----|:-----|:-----|:----|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | 2021 | | | | | 2 | Intangible asset amortization | $ | 327 | | $ | 312 | $ | 318 | Estimated amortization expense over the next five fiscal years is as follows: | | | | | | | | | | | | | | |---:|:-------------------------------|:-----|-----:|:-----|:-----|-----:|:---|:----|:---|:----|:---|:----| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | | | | | | | 2 | Estimated amortization expense | $ | 340 | | $ | 320 | $ | 297 | $ | 287 | $ | 247 | NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: | | | | | | | | | | | | |---:|:---------------------------|:------|:-------|:-----|:------|:-----|:-------|:------|:---|:-------| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | United States | $ | 12,107 | | | $ | 11,698 | | $ | 10,858 | | 3 | International | 6,246 | | | 6,297 | | | 6,757 | | | | 4 | TOTAL | $ | 18,353 | | | $ | 17,995 | | $ | 17,615 | Amounts in millions of dollars except per share amounts or as otherwise specified.
GENERAL MILLS INC 10-K form, page 51: 51 NOTE 4. RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS We view our restructuring activities as actions that help us meet our long-term growth targets and are evaluated against internal rate of return and net present value targets. Each restructuring action normally takes one to two years to complete. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. These activities result in various restructuring costs, including asset write-offs, exit charges including severance, contract termination fees, and decommissioning and other costs. Accelerated depreciation associated with restructured assets, as used in the context of our disclosures regarding restructuring activity, refers to the increase in depreciation expense caused by shortening the useful life or updating the salvage value of depreciable fixed assets to coincide with the end of production under an approved restructuring plan. Any impairment of the asset is recognized immediately in the period the plan is approved. Restructuring charges recorded in fiscal 2023 were as follows: Expense, in Millions Global supply chain actions $ 36.2 Network optimization actions 6.4 Charges associated with restructuring actions previously announced 18.4 Total restructuring charges $ 61.0 In fiscal 2023, we approved restructuring actions to enhance the efficiency of our global supply chain structure. We expect to incur approximately $ 52 million of restructuring charges and project-related costs related to these actions, of which approximately $ 35 million will be cash. These charges are expected to consist of approximately $ 26 million of severance and $ 26 million of other costs, primarily $ 8 million of asset impairment and $ 11 million of other asset write-offs. We recognized $ 25.8 million of severance and $ 10.4 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2025. In fiscal 2023, we approved restructuring actions in our International segment to optimize our Häagen-Dazs shops network. We expect to incur approximately $ 10 million of restructuring charges and project-related costs related to these actions, of which approximately $ 9 million will be cash. These charges are expected to consist of approximately $ 6 million of severance and $ 4 million of other costs. We recognized $ 5.6 million of severance and $ 0.8 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2024 . Certain actions are subject to union negotiations and works counsel consultations, where required. We paid net $ 36.6 million of cash related to restructuring actions in fiscal 2023. We paid net $ 93.9 million of cash in fiscal 2022. Restructuring charges recorded in fiscal 2022 were as follows: Expense, in Millions International manufacturing and logistics operations $ 15.0 Net recoveries associated with restructuring actions previously announced (38.2) Total net restructuring recoveries $ (23.2) Restructuring charges recorded in fiscal 2021 were as follows: Expense, in Millions Global organizational structure and resource alignment $ 157.3 International route-to-market and supply chain optimization 13.0 Charges associated with restructuring actions previously announced 2.4 Total restructuring charges $ 172.7 , GENERAL MILLS INC 10-K form, page 52: 52 Restructuring and impairment charges and project-related costs are classified in our Consolidated Statements of Earnings as follows: Fiscal Year In Millions 2023 2022 2021 Restructuring, impairment, and other exit costs (recoveries) $ 56.2 $ (26.5) $ 170.4 Cost of sales 4.8 3.3 2.3 Total restructuring and impairment charges (recoveries) 61.0 (23.2) 172.7 Project-related costs classified in cost of sales $ 2.4 $ - $ - The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: In Millions Severance Other Exit Costs Total Reserve balance as of May 31, 2020 $ 17.8 $ - $ 17.8 Fiscal 2021 charges, including foreign currency translation 142.3 1.6 143.9 Utilized in fiscal 2021 (12.8) (0.1) (12.9) Reserve balance as of May 30, 2021 147.3 1.5 148.8 Fiscal 2022 charges, including foreign currency translation 2.2 1.2 3.4 Reserve adjustment (34.0) - (34.0) Utilized in fiscal 2022 (80.1) (1.3) (81.4) Reserve balance as of May 29, 2022 35.4 1.4 36.8 Fiscal 2023 charges, including foreign currency translation 41.6 0.1 41.7 Utilized in fiscal 2023 (29.4) (1.4) (30.8) Reserve balance as of May 28, 2023 $ 47.6 $ 0.1 $ 47.7 The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES We have a 50 percent interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in approximately 130 countries outside the United States and Canada. CPW also markets cereal bars in European countries and manufactures private label cereals for customers in the United Kingdom. We have guaranteed a portion of CPW's debt and its pension obligation in the United Kingdom. We also have a 50 percent interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures and markets Häagen-Dazs ice cream products and frozen novelties. Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31. Joint venture related balance sheet activity is as follows: In Millions May 28, 2023 May 29, 2022 Cumulative investments $ 401.5 $ 416.4 Goodwill and other intangibles 444.1 444.9 Aggregate advances included in cumulative investments 275.6 254.4 , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 44: 44 The Procter & Gamble Company NOTE 3 SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">PROPERTY, PLANT AND EQUIPMENT</td></tr><tr><td colspan="3">Buildings</td><td>$</td><td>8,277 </td><td></td><td colspan="3"></td><td>$</td><td>8,087 </td><td></td></tr><tr><td colspan="3">Machinery and equipment</td><td colspan="2">36,521 </td><td></td><td colspan="3"></td><td colspan="2">35,098 </td><td></td></tr><tr><td colspan="3">Land</td><td colspan="2">867 </td><td></td><td colspan="3"></td><td colspan="2">756 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">2,980 </td><td></td><td colspan="3"></td><td colspan="2">2,756 </td><td></td></tr><tr><td colspan="3">TOTAL PROPERTY, PLANT AND EQUIPMENT</td><td colspan="2">48,645 </td><td></td><td colspan="3"></td><td colspan="2">46,697 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(26,736)</td><td></td><td colspan="3"></td><td colspan="2">(25,502)</td><td></td></tr><tr><td colspan="3">PROPERTY, PLANT AND EQUIPMENT, NET</td><td>$</td><td>21,909 </td><td></td><td colspan="3"></td><td>$</td><td>21,195 </td><td></td></tr></table> Selected components of current and noncurrent liabilities were as follows:<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">ACCRUED AND OTHER LIABILITIES - CURRENT</td></tr><tr><td colspan="3">Marketing and promotion</td><td>$</td><td>3,894 </td><td></td><td colspan="3"></td><td>$</td><td>3,878 </td><td></td></tr><tr><td colspan="3">Compensation expenses</td><td colspan="2">2,030 </td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td></tr><tr><td colspan="3">Taxes payable</td><td colspan="2">828 </td><td></td><td colspan="3"></td><td colspan="2">587 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">631 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Leases</td><td colspan="3">222</td><td colspan="3"></td><td colspan="3">205</td></tr><tr><td colspan="3">Restructuring reserves</td><td colspan="2">174 </td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">3,150 </td><td></td><td colspan="3"></td><td colspan="2">2,939 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>10,929 </td><td></td><td colspan="3"></td><td>$</td><td>9,554 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">OTHER NONCURRENT LIABILITIES</td></tr><tr><td colspan="3">Pension benefits</td><td>$</td><td>3,116 </td><td></td><td colspan="3"></td><td>$</td><td>3,139 </td><td></td></tr><tr><td colspan="3">U.S. Tax Act transitional tax payable</td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Other retiree benefits</td><td colspan="2">690 </td><td></td><td colspan="3"></td><td colspan="2">672 </td><td></td></tr><tr><td colspan="3">Uncertain tax positions</td><td colspan="2">622 </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td></tr><tr><td colspan="3">Long term operating leases</td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">445 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">530 </td><td></td><td colspan="3"></td><td colspan="2">490 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>7,152 </td><td></td><td colspan="3"></td><td>$</td><td>7,616 </td><td></td></tr></table> RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 45: The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separations</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2021</td><td>$</td><td>176 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>102 </td><td></td><td>$</td><td>278 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">88 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">78 </td><td></td><td colspan="2">253 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(143)</td><td></td><td colspan="2">(87)</td><td></td><td colspan="2">(154)</td><td></td><td colspan="2">(384)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td colspan="2">121 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">26 </td><td></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td>$</td><td>155 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>19 </td><td></td><td>$</td><td>174 </td><td></td></tr></table>Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3">2022</td><td colspan="3">2021</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td><td>$</td><td>13 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td><td colspan="2">25 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td><td colspan="2">51 </td><td></td></tr><tr><td colspan="3">Fabric &amp; Home Care</td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">22 </td><td></td></tr><tr><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td><td colspan="2">29 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td><td colspan="2">190 </td><td></td></tr><tr><td colspan="3">Total Company</td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td><td>$</td><td>330 </td><td></td></tr></table> (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Beauty</td><td colspan="3">Grooming</td><td colspan="3">Health Care</td><td colspan="3">Fabric &amp; Home Care</td><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="3">Total Company</td></tr><tr><td colspan="3">Balance at June 30, 2021 - Net (1)</td><td>$</td><td>13,257 </td><td></td><td>$</td><td>13,095 </td><td></td><td>$</td><td>8,046 </td><td></td><td>$</td><td>1,873 </td><td></td><td>$</td><td>4,653 </td><td></td><td>$</td><td>40,924 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">781 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">1 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">782 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">(742)</td><td></td><td colspan="2">(524)</td><td></td><td colspan="2">(458)</td><td></td><td colspan="2">(65)</td><td></td><td colspan="2">(217)</td><td></td><td colspan="2">(2,006)</td><td></td></tr><tr><td colspan="3">Balance at June 30, 2022 - Net (1)</td><td colspan="2">13,296 </td><td></td><td colspan="2">12,571 </td><td></td><td colspan="2">7,589 </td><td></td><td colspan="2">1,808 </td><td></td><td colspan="2">4,436 </td><td></td><td colspan="2">39,700 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">405 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">33 </td><td></td><td colspan="2">438 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">187 </td><td></td><td colspan="2">132 </td><td></td><td colspan="2">129 </td><td></td><td colspan="2">13 </td><td></td><td colspan="2">60 </td><td></td><td colspan="2">521 </td><td></td></tr><tr><td colspan="3">Balance at June 30, 2023 - Net (1)</td><td>$</td><td>13,888 </td><td></td><td>$</td><td>12,703 </td><td></td><td>$</td><td>7,718 </td><td></td><td>$</td><td>1,821 </td><td></td><td>$</td><td>4,529 </td><td></td><td>$</td><td>40,659 </td><td></td></tr></table> (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 46: 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">2023</td><td colspan="3"></td><td colspan="6">2022</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td><td colspan="3"></td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH DETERMINABLE LIVES</td></tr><tr><td colspan="3">Brands</td><td>$</td><td>4,352 </td><td></td><td>$</td><td>(2,540)</td><td></td><td colspan="3"></td><td>$</td><td>4,299 </td><td></td><td>$</td><td>(2,628)</td><td></td></tr><tr><td colspan="3">Patents and technology</td><td colspan="2">2,775 </td><td></td><td colspan="2">(2,649)</td><td></td><td colspan="3"></td><td colspan="2">2,769 </td><td></td><td colspan="2">(2,609)</td><td></td></tr><tr><td colspan="3">Customer relationships</td><td colspan="2">1,847 </td><td></td><td colspan="2">(1,039)</td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td><td colspan="2">(939)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">73 </td><td></td><td colspan="2">(28)</td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td><td colspan="2">(97)</td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>9,047 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>9,012 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH INDEFINITE LIVES</td></tr><tr><td colspan="3">Brands</td><td colspan="2">20,992 </td><td></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">20,940 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL INTANGIBLE ASSETS</td><td>$</td><td>30,039 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>29,952 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr></table>Amortization expense of intangible assets was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Intangible asset amortization</td><td>$</td><td>327 </td><td></td><td colspan="3"></td><td>$</td><td>312 </td><td></td><td colspan="3"></td><td>$</td><td>318 </td><td></td></tr></table>Estimated amortization expense over the next five fiscal years is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Estimated amortization expense</td><td>$</td><td>340 </td><td></td><td>$</td><td>320 </td><td></td><td>$</td><td>297 </td><td></td><td>$</td><td>287 </td><td></td><td>$</td><td>247 </td><td></td></tr></table> NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">United States</td><td>$</td><td>12,107 </td><td></td><td colspan="3"></td><td>$</td><td>11,698 </td><td></td><td colspan="3"></td><td>$</td><td>10,858 </td><td></td></tr><tr><td colspan="3">International</td><td colspan="2">6,246 </td><td></td><td colspan="3"></td><td colspan="2">6,297 </td><td></td><td colspan="3"></td><td colspan="2">6,757 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>18,353 </td><td></td><td colspan="3"></td><td>$</td><td>17,995 </td><td></td><td colspan="3"></td><td>$</td><td>17,615 </td><td></td></tr></table>Amounts in millions of dollars except per share amounts or as otherwise specified.
51 NOTE 4. RESTRUCTURING, IMPAIRMENT, AND OTHER EXIT COSTS We view our restructuring activities as actions that help us meet our long-term growth targets and are evaluated against internal rate of return and net present value targets. Each restructuring action normally takes one to two years to complete. At completion (or as each major stage is completed in the case of multi-year programs), the project begins to deliver cash savings and/or reduced depreciation. These activities result in various restructuring costs, including asset write-offs, exit charges including severance, contract termination fees, and decommissioning and other costs. Accelerated depreciation associated with restructured assets, as used in the context of our disclosures regarding restructuring activity, refers to the increase in depreciation expense caused by shortening the useful life or updating the salvage value of depreciable fixed assets to coincide with the end of production under an approved restructuring plan. Any impairment of the asset is recognized immediately in the period the plan is approved. Restructuring charges recorded in fiscal 2023 were as follows: Expense, in Millions Global supply chain actions $ 36.2 Network optimization actions 6.4 Charges associated with restructuring actions previously announced 18.4 Total restructuring charges $ 61.0 In fiscal 2023, we approved restructuring actions to enhance the efficiency of our global supply chain structure. We expect to incur approximately $ 52 million of restructuring charges and project-related costs related to these actions, of which approximately $ 35 million will be cash. These charges are expected to consist of approximately $ 26 million of severance and $ 26 million of other costs, primarily $ 8 million of asset impairment and $ 11 million of other asset write-offs. We recognized $ 25.8 million of severance and $ 10.4 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2025. In fiscal 2023, we approved restructuring actions in our International segment to optimize our Häagen-Dazs shops network. We expect to incur approximately $ 10 million of restructuring charges and project-related costs related to these actions, of which approximately $ 9 million will be cash. These charges are expected to consist of approximately $ 6 million of severance and $ 4 million of other costs. We recognized $ 5.6 million of severance and $ 0.8 million of other costs in fiscal 2023. We expect these actions to be completed by the end of fiscal 2024 . Certain actions are subject to union negotiations and works counsel consultations, where required. We paid net $ 36.6 million of cash related to restructuring actions in fiscal 2023. We paid net $ 93.9 million of cash in fiscal 2022. Restructuring charges recorded in fiscal 2022 were as follows: Expense, in Millions International manufacturing and logistics operations $ 15.0 Net recoveries associated with restructuring actions previously announced (38.2) Total net restructuring recoveries $ (23.2) Restructuring charges recorded in fiscal 2021 were as follows: Expense, in Millions Global organizational structure and resource alignment $ 157.3 International route-to-market and supply chain optimization 13.0 Charges associated with restructuring actions previously announced 2.4 Total restructuring charges $ 172.7 , 52 Restructuring and impairment charges and project-related costs are classified in our Consolidated Statements of Earnings as follows: Fiscal Year In Millions 2023 2022 2021 Restructuring, impairment, and other exit costs (recoveries) $ 56.2 $ (26.5) $ 170.4 Cost of sales 4.8 3.3 2.3 Total restructuring and impairment charges (recoveries) 61.0 (23.2) 172.7 Project-related costs classified in cost of sales $ 2.4 $ - $ - The roll forward of our restructuring and other exit cost reserves, included in other current liabilities, is as follows: In Millions Severance Other Exit Costs Total Reserve balance as of May 31, 2020 $ 17.8 $ - $ 17.8 Fiscal 2021 charges, including foreign currency translation 142.3 1.6 143.9 Utilized in fiscal 2021 (12.8) (0.1) (12.9) Reserve balance as of May 30, 2021 147.3 1.5 148.8 Fiscal 2022 charges, including foreign currency translation 2.2 1.2 3.4 Reserve adjustment (34.0) - (34.0) Utilized in fiscal 2022 (80.1) (1.3) (81.4) Reserve balance as of May 29, 2022 35.4 1.4 36.8 Fiscal 2023 charges, including foreign currency translation 41.6 0.1 41.7 Utilized in fiscal 2023 (29.4) (1.4) (30.8) Reserve balance as of May 28, 2023 $ 47.6 $ 0.1 $ 47.7 The charges recognized in the roll forward of our reserves for restructuring and other exit costs do not include items charged directly to expense (e.g., asset impairment charges, the gain or loss on the sale of restructured assets, and the write-off of spare parts) and other periodic exit costs recognized as incurred, as those items are not reflected in our restructuring and other exit cost reserves on our Consolidated Balance Sheets. NOTE 5. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES We have a 50 percent interest in Cereal Partners Worldwide (CPW), which manufactures and markets ready-to-eat cereal products in approximately 130 countries outside the United States and Canada. CPW also markets cereal bars in European countries and manufactures private label cereals for customers in the United Kingdom. We have guaranteed a portion of CPW's debt and its pension obligation in the United Kingdom. We also have a 50 percent interest in Häagen-Dazs Japan, Inc. (HDJ). This joint venture manufactures and markets Häagen-Dazs ice cream products and frozen novelties. Results from our CPW and HDJ joint ventures are reported for the 12 months ended March 31. Joint venture related balance sheet activity is as follows: In Millions May 28, 2023 May 29, 2022 Cumulative investments $ 401.5 $ 416.4 Goodwill and other intangibles 444.1 444.9 Aggregate advances included in cumulative investments 275.6 254.4 , 44 The Procter & Gamble Company NOTE 3 SUPPLEMENTAL FINANCIAL INFORMATION The components of property, plant and equipment were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">PROPERTY, PLANT AND EQUIPMENT</td></tr><tr><td colspan="3">Buildings</td><td>$</td><td>8,277 </td><td></td><td colspan="3"></td><td>$</td><td>8,087 </td><td></td></tr><tr><td colspan="3">Machinery and equipment</td><td colspan="2">36,521 </td><td></td><td colspan="3"></td><td colspan="2">35,098 </td><td></td></tr><tr><td colspan="3">Land</td><td colspan="2">867 </td><td></td><td colspan="3"></td><td colspan="2">756 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">2,980 </td><td></td><td colspan="3"></td><td colspan="2">2,756 </td><td></td></tr><tr><td colspan="3">TOTAL PROPERTY, PLANT AND EQUIPMENT</td><td colspan="2">48,645 </td><td></td><td colspan="3"></td><td colspan="2">46,697 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(26,736)</td><td></td><td colspan="3"></td><td colspan="2">(25,502)</td><td></td></tr><tr><td colspan="3">PROPERTY, PLANT AND EQUIPMENT, NET</td><td>$</td><td>21,909 </td><td></td><td colspan="3"></td><td>$</td><td>21,195 </td><td></td></tr></table> Selected components of current and noncurrent liabilities were as follows:<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="12">ACCRUED AND OTHER LIABILITIES - CURRENT</td></tr><tr><td colspan="3">Marketing and promotion</td><td>$</td><td>3,894 </td><td></td><td colspan="3"></td><td>$</td><td>3,878 </td><td></td></tr><tr><td colspan="3">Compensation expenses</td><td colspan="2">2,030 </td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td></tr><tr><td colspan="3">Taxes payable</td><td colspan="2">828 </td><td></td><td colspan="3"></td><td colspan="2">587 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">631 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Leases</td><td colspan="3">222</td><td colspan="3"></td><td colspan="3">205</td></tr><tr><td colspan="3">Restructuring reserves</td><td colspan="2">174 </td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">3,150 </td><td></td><td colspan="3"></td><td colspan="2">2,939 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>10,929 </td><td></td><td colspan="3"></td><td>$</td><td>9,554 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">OTHER NONCURRENT LIABILITIES</td></tr><tr><td colspan="3">Pension benefits</td><td>$</td><td>3,116 </td><td></td><td colspan="3"></td><td>$</td><td>3,139 </td><td></td></tr><tr><td colspan="3">U.S. Tax Act transitional tax payable</td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Other retiree benefits</td><td colspan="2">690 </td><td></td><td colspan="3"></td><td colspan="2">672 </td><td></td></tr><tr><td colspan="3">Uncertain tax positions</td><td colspan="2">622 </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td></tr><tr><td colspan="3">Long term operating leases</td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td></tr><tr><td colspan="3">Derivative liabilities</td><td colspan="2">445 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">530 </td><td></td><td colspan="3"></td><td colspan="2">490 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>7,152 </td><td></td><td colspan="3"></td><td>$</td><td>7,616 </td><td></td></tr></table> RESTRUCTURING PROGRAM The Company has historically incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. Before tax costs incurred under ongoing programs have generally ranged from $250 to $500 annually. Restructuring costs incurred consist primarily of costs to separate employees, asset-related costs to exit facilities and other costs. Employee separation costs relate to severance packages that are primarily voluntary and the amounts calculated are based on salary levels and past service periods. Severance costs related to voluntary separations are generally charged to earnings when the employee accepts the offer. Asset-related costs consist of both asset write-downs and accelerated depreciation. Asset write-downs relate to the establishment of a new fair value basis for assets held-for-sale or for disposal. These assets are written down to the lower of their current carrying basis or amounts expected to be realized upon disposal, less minor disposal costs. Charges for accelerated depreciation relate to long-lived assets that will be taken out of service prior to the end of their normal service period. These assets relate primarily to manufacturing consolidations and technology standardizations. The asset-related charges will not have a significant impact on future depreciation charges. Other restructuring-type charges primarily include asset removal and termination of contracts related to supply chain and overhead optimization. The Company incurred total restructuring charges of $329 and $253 for the fiscal years ended June 30, 2023 and 2022. Of the charges incurred for fiscal year 2023, $160 were recorded in Costs of products sold, $160 in SG&A and $9 in Other non-operating income, net. Of the Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 45 charges incurred in fiscal year 2022, $182 were recorded in Costs of products sold, $67 in SG&A, and $4 in Other non-operating income, net. The following table presents restructuring activity for the fiscal years ended June 30, 2023 and 2022: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Separations</td><td colspan="3">Asset-Related Costs</td><td colspan="3">Other</td><td colspan="3">Total</td></tr><tr><td colspan="3">RESERVE JUNE 30, 2021</td><td>$</td><td>176 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>102 </td><td></td><td>$</td><td>278 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">88 </td><td></td><td colspan="2">87 </td><td></td><td colspan="2">78 </td><td></td><td colspan="2">253 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(143)</td><td></td><td colspan="2">(87)</td><td></td><td colspan="2">(154)</td><td></td><td colspan="2">(384)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2022</td><td colspan="2">121 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">26 </td><td></td><td colspan="2">147 </td><td></td></tr><tr><td colspan="3">Cost incurred and charged to expense</td><td colspan="2">175 </td><td></td><td colspan="2">43 </td><td></td><td colspan="2">111 </td><td></td><td colspan="2">329 </td><td></td></tr><tr><td colspan="3">Cost paid/settled</td><td colspan="2">(141)</td><td></td><td colspan="2">(43)</td><td></td><td colspan="2">(118)</td><td></td><td colspan="2">(302)</td><td></td></tr><tr><td colspan="3">RESERVE JUNE 30, 2023</td><td>$</td><td>155 </td><td></td><td>$</td><td>- </td><td></td><td>$</td><td>19 </td><td></td><td>$</td><td>174 </td><td></td></tr></table>Consistent with our historical policies for ongoing restructuring-type activities, the restructuring charges are funded by and included within Corporate for management and segment reporting. However, for information purposes, the following table summarizes the total restructuring costs related to our reportable segments: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3">2022</td><td colspan="3">2021</td></tr><tr><td colspan="3">Beauty</td><td>$</td><td>15 </td><td></td><td>$</td><td>11 </td><td></td><td>$</td><td>13 </td><td></td></tr><tr><td colspan="3">Grooming</td><td colspan="2">17 </td><td></td><td colspan="2">14 </td><td></td><td colspan="2">25 </td><td></td></tr><tr><td colspan="3">Health Care</td><td colspan="2">28 </td><td></td><td colspan="2">32 </td><td></td><td colspan="2">51 </td><td></td></tr><tr><td colspan="3">Fabric &amp; Home Care</td><td colspan="2">87 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">22 </td><td></td></tr><tr><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="2">21 </td><td></td><td colspan="2">83 </td><td></td><td colspan="2">29 </td><td></td></tr><tr><td colspan="3">Corporate (1)</td><td colspan="2">161 </td><td></td><td colspan="2">71 </td><td></td><td colspan="2">190 </td><td></td></tr><tr><td colspan="3">Total Company</td><td>$</td><td>329 </td><td></td><td>$</td><td>253 </td><td></td><td>$</td><td>330 </td><td></td></tr></table> (1)Corporate includes costs related to allocated overheads, including charges related to our Enterprise Markets, Global Business Services and Corporate Functions activities. NOTE 4 GOODWILL AND INTANGIBLE ASSETS The change in the net carrying amount of goodwill by reportable segment was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Beauty</td><td colspan="3">Grooming</td><td colspan="3">Health Care</td><td colspan="3">Fabric &amp; Home Care</td><td colspan="3">Baby, Feminine &amp; Family Care</td><td colspan="3">Total Company</td></tr><tr><td colspan="3">Balance at June 30, 2021 - Net (1)</td><td>$</td><td>13,257 </td><td></td><td>$</td><td>13,095 </td><td></td><td>$</td><td>8,046 </td><td></td><td>$</td><td>1,873 </td><td></td><td>$</td><td>4,653 </td><td></td><td>$</td><td>40,924 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">781 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">1 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">782 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">(742)</td><td></td><td colspan="2">(524)</td><td></td><td colspan="2">(458)</td><td></td><td colspan="2">(65)</td><td></td><td colspan="2">(217)</td><td></td><td colspan="2">(2,006)</td><td></td></tr><tr><td colspan="3">Balance at June 30, 2022 - Net (1)</td><td colspan="2">13,296 </td><td></td><td colspan="2">12,571 </td><td></td><td colspan="2">7,589 </td><td></td><td colspan="2">1,808 </td><td></td><td colspan="2">4,436 </td><td></td><td colspan="2">39,700 </td><td></td></tr><tr><td colspan="3">Acquisitions and divestitures</td><td colspan="2">405 </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">- </td><td></td><td colspan="2">33 </td><td></td><td colspan="2">438 </td><td></td></tr><tr><td colspan="3">Translation and other</td><td colspan="2">187 </td><td></td><td colspan="2">132 </td><td></td><td colspan="2">129 </td><td></td><td colspan="2">13 </td><td></td><td colspan="2">60 </td><td></td><td colspan="2">521 </td><td></td></tr><tr><td colspan="3">Balance at June 30, 2023 - Net (1)</td><td>$</td><td>13,888 </td><td></td><td>$</td><td>12,703 </td><td></td><td>$</td><td>7,718 </td><td></td><td>$</td><td>1,821 </td><td></td><td>$</td><td>4,529 </td><td></td><td>$</td><td>40,659 </td><td></td></tr></table> (1)Grooming goodwill balance is net of $7.9 billion accumulated impairment losses. Goodwill and indefinite-lived intangibles are tested for impairment at least annually by comparing the estimated fair values of our reporting units and indefinite-lived intangible assets to their respective carrying values. We use the income method to estimate the fair value of these assets, which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability). Significant judgement by management is required to estimate the impact of macroeconomic and other factors on future cash flows, including those related to the Russia-Ukraine War. Estimates utilized in the projected cash flows include consideration of macroeconomic conditions, overall category growth rates, competitive activities, cost containment and margin expansion, Company business plans, the underlying product or technology life cycles, economic barriers to entry, a brand's relative market position and the discount rate applied to the cash flows. Unanticipated market or macroeconomic events and circumstances may occur, which could affect the accuracy or validity of the estimates and assumptions. Amounts in millions of dollars except per share amounts or as otherwise specified. , 46 The Procter & Gamble Company We believe the estimates and assumptions utilized in our impairment testing are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those used in our valuations. To the extent such factors result in a failure to achieve the level of projected cash flows initially used to estimate fair value for purposes of establishing or subsequently impairing the carrying amount of goodwill and related intangible assets, we may need to record additional non-cash impairment charges in the future. Goodwill increased during fiscal 2023 primarily due to an acquisition in the Beauty segment, other minor brand acquisitions in the Baby, Feminine & Family Care segment and currency translation across all reportable segments. Goodwill decreased during fiscal 2022 due to currency translation across all reportable segments, partially offset by three acquisitions (Farmacy Beauty, Ouai and TULA) in the Beauty reportable segment. Identifiable intangible assets were comprised of: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">2023</td><td colspan="3"></td><td colspan="6">2022</td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td><td colspan="3"></td><td colspan="3">Gross Carrying Amount</td><td colspan="3">AccumulatedAmortization</td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH DETERMINABLE LIVES</td></tr><tr><td colspan="3">Brands</td><td>$</td><td>4,352 </td><td></td><td>$</td><td>(2,540)</td><td></td><td colspan="3"></td><td>$</td><td>4,299 </td><td></td><td>$</td><td>(2,628)</td><td></td></tr><tr><td colspan="3">Patents and technology</td><td colspan="2">2,775 </td><td></td><td colspan="2">(2,649)</td><td></td><td colspan="3"></td><td colspan="2">2,769 </td><td></td><td colspan="2">(2,609)</td><td></td></tr><tr><td colspan="3">Customer relationships</td><td colspan="2">1,847 </td><td></td><td colspan="2">(1,039)</td><td></td><td colspan="3"></td><td colspan="2">1,797 </td><td></td><td colspan="2">(939)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">73 </td><td></td><td colspan="2">(28)</td><td></td><td colspan="3"></td><td colspan="2">147 </td><td></td><td colspan="2">(97)</td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>9,047 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>9,012 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="18">INTANGIBLE ASSETS WITH INDEFINITE LIVES</td></tr><tr><td colspan="3">Brands</td><td colspan="2">20,992 </td><td></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">20,940 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">TOTAL INTANGIBLE ASSETS</td><td>$</td><td>30,039 </td><td></td><td>$</td><td>(6,256)</td><td></td><td colspan="3"></td><td>$</td><td>29,952 </td><td></td><td>$</td><td>(6,273)</td><td></td></tr></table>Amortization expense of intangible assets was as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Intangible asset amortization</td><td>$</td><td>327 </td><td></td><td colspan="3"></td><td>$</td><td>312 </td><td></td><td colspan="3"></td><td>$</td><td>318 </td><td></td></tr></table>Estimated amortization expense over the next five fiscal years is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Estimated amortization expense</td><td>$</td><td>340 </td><td></td><td>$</td><td>320 </td><td></td><td>$</td><td>297 </td><td></td><td>$</td><td>287 </td><td></td><td>$</td><td>247 </td><td></td></tr></table> NOTE 5 INCOME TAXES Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. We have elected to account for the tax effects of Global Intangible Low-Taxed Income (GILTI) as a current period expense when incurred. Earnings before income taxes consisted of the following: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">United States</td><td>$</td><td>12,107 </td><td></td><td colspan="3"></td><td>$</td><td>11,698 </td><td></td><td colspan="3"></td><td>$</td><td>10,858 </td><td></td></tr><tr><td colspan="3">International</td><td colspan="2">6,246 </td><td></td><td colspan="3"></td><td colspan="2">6,297 </td><td></td><td colspan="3"></td><td colspan="2">6,757 </td><td></td></tr><tr><td colspan="3">TOTAL</td><td>$</td><td>18,353 </td><td></td><td colspan="3"></td><td>$</td><td>17,995 </td><td></td><td colspan="3"></td><td>$</td><td>17,615 </td><td></td></tr></table>Amounts in millions of dollars except per share amounts or as otherwise specified.
q_com072
Compare the impact of leasing costs on the overall profitability of General Mills and The Procter & Gamble Company for the fiscal year 2023.
General Mills' total leasing costs for fiscal year 2023 amounted to $163.7 million, including operating lease costs, variable lease costs, and short-term lease costs. The company's total non-cancelable future lease obligations are $402.7 million, with a weighted average remaining lease term of 5.2 years and a weighted average discount rate of 4.4%. The Procter & Gamble Company's total leasing costs for fiscal year 2023 amounted to $308 million, including operating lease costs and variable lease costs. P&G's total operating lease liabilities are $817 million, with a weighted average remaining lease term of 6.2 years and a weighted average discount rate of 3.5%. Conclusion - P&G's higher leasing costs reflect its larger scale of operations and more extensive use of leased assets. However, P&G's longer average remaining lease term and lower discount rate indicate more favorable lease terms, which can help mitigate the impact on profitability.
Comparison
54, 55;60, 61
0001193125-23-177500;0000080424-23-000073
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 54: 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , GENERAL MILLS INC 10-K form, page 55: 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 60: 60 The Procter & Gamble Company Long-term debt maturities during the next five fiscal years are as follows: | | | | | | | | |---:|:----------------------------|:-------|:-------|:-------|:-------|:-------| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | 2 | Debt maturities | $3,951 | $1,954 | $3,364 | $4,368 | $1,380 | NOTE 11 ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------|:----------------------|:---|:------------------------------|:------|:-----------------------------|:--------|:-----------|:---|:---------|:---|:---------| | 1 | Changes in Accumulated Other Comprehensive Income/(Loss) by Component | | | | | | | | | | | | | 2 | | Investment Securities | | Post-retirement Benefit Plans | | Foreign Currency Translation | | Total AOCI | | | | | | 3 | BALANCE at JUNE 30, 2021 | $ | 15 | | | $ | (2,963) | | $ | (10,796) | $ | (13,744) | | 4 | OCI before reclassifications (1) | 4 | | | 2,797 | | | (1,451) | | 1,350 | | | | 5 | Amounts reclassified to the Consolidated Statement of Earnings (2) | 1 | | | 195 | | | 1 | | 197 | | | | 6 | Net current period OCI | 5 | | | 2,992 | | | (1,450) | | 1,547 | | | | 7 | Less: OCI attributable to non-controlling interests | - | | | 2 | | | (10) | | (8) | | | | 8 | BALANCE at JUNE 30, 2022 | 20 | | | 27 | | | (12,236) | | (12,189) | | | | 9 | OCI before reclassifications (3) | (7) | | | 21 | | | (71) | | (57) | | | | 10 | Amounts reclassified to the Consolidated Statement of Earnings (4) | - | | | 19 | | | - | | 19 | | | | 11 | Net current period OCI | (7) | | | 40 | | | (71) | | (38) | | | | 12 | Less: OCI attributable to non-controlling interests | - | | | - | | | (7) | | (7) | | | | 13 | BALANCE at JUNE 30, 2023 | $ | 13 | | | $ | 67 | | $ | (12,300) | $ | (12,220) | (1)Net of tax (benefit)/expense of $1, $953 and $515 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (2)Net of tax (benefit)/expense of $0, $69 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. (3)Net of tax (benefit)/expense of $(2), $1 and $(197) for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (4)Net of tax (benefit)/expense of $0, $8 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings: •Investment securities: amounts reclassified from AOCI into Other non-operating income, net. •Postretirement benefit plans: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8). NOTE 12 LEASES The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 61: The Procter & Gamble Company 61 The components of the Company's total operating lease cost for the fiscal years ended June 30, 2023, 2022 and 2021, were as follows: | | | | | | | | | | | | |---:|:---------------------------|:-----|:----|:-----|:---|:-----|:----|:---|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | Operating lease cost | $ | 229 | | | $ | 220 | | $ | 245 | | 3 | Variable lease cost (1) | 79 | | | 89 | | | 75 | | | | 4 | Total lease cost | $ | 308 | | | $ | 309 | | $ | 320 | (1)Includes primarily costs for utilities, common area maintenance, property taxes and other operating costs associated with operating leases that are not included in the lease liability and are recognized in the period in which they are incurred. Supplemental balance sheet and other information related to leases is as follows: | | | | | | | | |---:|:------------------------------------------------------------|:----------|:----|:----------|:----|:----| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | Operating leases: | | | | | | | 3 | Right-of-use assets (Other noncurrent assets) | $ | 781 | | $ | 760 | | 5 | Current lease liabilities (Accrued and other liabilities) | 222 | | 205 | | | | 6 | Noncurrent lease liabilities (Other noncurrent liabilities) | 595 | | 595 | | | | 7 | Total operating lease liabilities | $ | 817 | | $ | 800 | | 9 | Weighted average remaining lease term: | | | | | | | 10 | Operating leases | 6.2 years | | 6.4 years | | | | 12 | Weighted average discount rate: | | | | | | | 13 | Operating leases | 3.5 | % | | 3.2 | % | At June 30, 2023, future payments of operating lease liabilities were as follows: | | | | | |---:|:-----------------------------------|:-----------------|:----| | 1 | | Operating Leases | | | 2 | | June 30, 2023 | | | 3 | 1 year | $ | 222 | | 4 | 2 years | 185 | | | 5 | 3 years | 137 | | | 6 | 4 years | 100 | | | 7 | 5 years | 71 | | | 8 | Over 5 years | 196 | | | 9 | Total lease payments | 911 | | | 10 | Less: Interest | (94) | | | 11 | Present value of lease liabilities | $ | 817 | Total cash paid for amounts included in the measurement of lease liabilities was $233 and $228 for the fiscal years ended June 30, 2023 and 2022, respectively. The right-of-use assets obtained in exchange for lease liabilities were $213 and $217 for the fiscal years ended June 30, 2023 and 2022, respectively. NOTE 13 COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. We have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. Amounts in millions of dollars except per share amounts or as otherwise specified.
54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , 60 The Procter & Gamble Company Long-term debt maturities during the next five fiscal years are as follows: | | | | | | | | |---:|:----------------------------|:-------|:-------|:-------|:-------|:-------| | 1 | Fiscal years ending June 30 | 2024 | 2025 | 2026 | 2027 | 2028 | | 2 | Debt maturities | $3,951 | $1,954 | $3,364 | $4,368 | $1,380 | NOTE 11 ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------|:----------------------|:---|:------------------------------|:------|:-----------------------------|:--------|:-----------|:---|:---------|:---|:---------| | 1 | Changes in Accumulated Other Comprehensive Income/(Loss) by Component | | | | | | | | | | | | | 2 | | Investment Securities | | Post-retirement Benefit Plans | | Foreign Currency Translation | | Total AOCI | | | | | | 3 | BALANCE at JUNE 30, 2021 | $ | 15 | | | $ | (2,963) | | $ | (10,796) | $ | (13,744) | | 4 | OCI before reclassifications (1) | 4 | | | 2,797 | | | (1,451) | | 1,350 | | | | 5 | Amounts reclassified to the Consolidated Statement of Earnings (2) | 1 | | | 195 | | | 1 | | 197 | | | | 6 | Net current period OCI | 5 | | | 2,992 | | | (1,450) | | 1,547 | | | | 7 | Less: OCI attributable to non-controlling interests | - | | | 2 | | | (10) | | (8) | | | | 8 | BALANCE at JUNE 30, 2022 | 20 | | | 27 | | | (12,236) | | (12,189) | | | | 9 | OCI before reclassifications (3) | (7) | | | 21 | | | (71) | | (57) | | | | 10 | Amounts reclassified to the Consolidated Statement of Earnings (4) | - | | | 19 | | | - | | 19 | | | | 11 | Net current period OCI | (7) | | | 40 | | | (71) | | (38) | | | | 12 | Less: OCI attributable to non-controlling interests | - | | | - | | | (7) | | (7) | | | | 13 | BALANCE at JUNE 30, 2023 | $ | 13 | | | $ | 67 | | $ | (12,300) | $ | (12,220) | (1)Net of tax (benefit)/expense of $1, $953 and $515 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (2)Net of tax (benefit)/expense of $0, $69 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. (3)Net of tax (benefit)/expense of $(2), $1 and $(197) for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (4)Net of tax (benefit)/expense of $0, $8 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings: •Investment securities: amounts reclassified from AOCI into Other non-operating income, net. •Postretirement benefit plans: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8). NOTE 12 LEASES The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 61 The components of the Company's total operating lease cost for the fiscal years ended June 30, 2023, 2022 and 2021, were as follows: | | | | | | | | | | | | |---:|:---------------------------|:-----|:----|:-----|:---|:-----|:----|:---|:---|:----| | 1 | Fiscal years ended June 30 | 2023 | | 2022 | | 2021 | | | | | | 2 | Operating lease cost | $ | 229 | | | $ | 220 | | $ | 245 | | 3 | Variable lease cost (1) | 79 | | | 89 | | | 75 | | | | 4 | Total lease cost | $ | 308 | | | $ | 309 | | $ | 320 | (1)Includes primarily costs for utilities, common area maintenance, property taxes and other operating costs associated with operating leases that are not included in the lease liability and are recognized in the period in which they are incurred. Supplemental balance sheet and other information related to leases is as follows: | | | | | | | | |---:|:------------------------------------------------------------|:----------|:----|:----------|:----|:----| | 1 | As of June 30 | 2023 | | 2022 | | | | 2 | Operating leases: | | | | | | | 3 | Right-of-use assets (Other noncurrent assets) | $ | 781 | | $ | 760 | | 5 | Current lease liabilities (Accrued and other liabilities) | 222 | | 205 | | | | 6 | Noncurrent lease liabilities (Other noncurrent liabilities) | 595 | | 595 | | | | 7 | Total operating lease liabilities | $ | 817 | | $ | 800 | | 9 | Weighted average remaining lease term: | | | | | | | 10 | Operating leases | 6.2 years | | 6.4 years | | | | 12 | Weighted average discount rate: | | | | | | | 13 | Operating leases | 3.5 | % | | 3.2 | % | At June 30, 2023, future payments of operating lease liabilities were as follows: | | | | | |---:|:-----------------------------------|:-----------------|:----| | 1 | | Operating Leases | | | 2 | | June 30, 2023 | | | 3 | 1 year | $ | 222 | | 4 | 2 years | 185 | | | 5 | 3 years | 137 | | | 6 | 4 years | 100 | | | 7 | 5 years | 71 | | | 8 | Over 5 years | 196 | | | 9 | Total lease payments | 911 | | | 10 | Less: Interest | (94) | | | 11 | Present value of lease liabilities | $ | 817 | Total cash paid for amounts included in the measurement of lease liabilities was $233 and $228 for the fiscal years ended June 30, 2023 and 2022, respectively. The right-of-use assets obtained in exchange for lease liabilities were $213 and $217 for the fiscal years ended June 30, 2023 and 2022, respectively. NOTE 13 COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. We have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. Amounts in millions of dollars except per share amounts or as otherwise specified.
GENERAL MILLS INC 10-K form, page 54: 54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , GENERAL MILLS INC 10-K form, page 55: 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 60: 60 The Procter & Gamble Company Long-term debt maturities during the next five fiscal years are as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Debt maturities</td><td colspan="3">$3,951</td><td colspan="3">$1,954</td><td colspan="3">$3,364</td><td colspan="3">$4,368</td><td colspan="3">$1,380</td></tr></table> NOTE 11 ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="24">Changes in Accumulated Other Comprehensive Income/(Loss) by Component</td></tr><tr><td colspan="3"></td><td colspan="3">Investment Securities</td><td colspan="3"></td><td colspan="3">Post-retirement Benefit Plans</td><td colspan="3"></td><td colspan="3">Foreign Currency Translation</td><td colspan="3"></td><td colspan="3">Total AOCI</td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2021</td><td>$</td><td>15 </td><td></td><td colspan="3"></td><td>$</td><td>(2,963)</td><td></td><td colspan="3"></td><td>$</td><td>(10,796)</td><td></td><td colspan="3"></td><td>$</td><td>(13,744)</td><td></td></tr><tr><td colspan="3">OCI before reclassifications (1)</td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">2,797 </td><td></td><td colspan="3"></td><td colspan="2">(1,451)</td><td></td><td colspan="3"></td><td colspan="2">1,350 </td><td></td></tr><tr><td colspan="3">Amounts reclassified to the Consolidated Statement of Earnings (2)</td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">195 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">197 </td><td></td></tr><tr><td colspan="3">Net current period OCI</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2,992 </td><td></td><td colspan="3"></td><td colspan="2">(1,450)</td><td></td><td colspan="3"></td><td colspan="2">1,547 </td><td></td></tr><tr><td colspan="3">Less: OCI attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">(10)</td><td></td><td colspan="3"></td><td colspan="2">(8)</td><td></td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2022</td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">(12,236)</td><td></td><td colspan="3"></td><td colspan="2">(12,189)</td><td></td></tr><tr><td colspan="3">OCI before reclassifications (3)</td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Amounts reclassified to the Consolidated Statement of Earnings (4)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3">Net current period OCI</td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Less: OCI attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2023</td><td>$</td><td>13 </td><td></td><td colspan="3"></td><td>$</td><td>67 </td><td></td><td colspan="3"></td><td>$</td><td>(12,300)</td><td></td><td colspan="3"></td><td>$</td><td>(12,220)</td><td></td></tr></table>(1)Net of tax (benefit)/expense of $1, $953 and $515 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (2)Net of tax (benefit)/expense of $0, $69 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. (3)Net of tax (benefit)/expense of $(2), $1 and $(197) for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (4)Net of tax (benefit)/expense of $0, $8 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings: •Investment securities: amounts reclassified from AOCI into Other non-operating income, net. •Postretirement benefit plans: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8). NOTE 12 LEASES The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components. Amounts in millions of dollars except per share amounts or as otherwise specified. , PROCTER & GAMBLE Co 10-K form for the fiscal year ended 2023-06-30, page 61: The Procter & Gamble Company 61 The components of the Company's total operating lease cost for the fiscal years ended June 30, 2023, 2022 and 2021, were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Operating lease cost</td><td>$</td><td>229 </td><td></td><td colspan="3"></td><td>$</td><td>220 </td><td></td><td colspan="3"></td><td>$</td><td>245 </td><td></td></tr><tr><td colspan="3">Variable lease cost (1)</td><td colspan="2">79 </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td></tr><tr><td colspan="3">Total lease cost</td><td>$</td><td>308 </td><td></td><td colspan="3"></td><td>$</td><td>309 </td><td></td><td colspan="3"></td><td>$</td><td>320 </td><td></td></tr></table>(1)Includes primarily costs for utilities, common area maintenance, property taxes and other operating costs associated with operating leases that are not included in the lease liability and are recognized in the period in which they are incurred. Supplemental balance sheet and other information related to leases is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Operating leases:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Right-of-use assets (Other noncurrent assets)</td><td>$</td><td colspan="2">781</td><td colspan="3"></td><td>$</td><td colspan="2">760</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current lease liabilities (Accrued and other liabilities)</td><td colspan="3">222</td><td colspan="3"></td><td colspan="3">205</td></tr><tr><td colspan="3">Noncurrent lease liabilities (Other noncurrent liabilities)</td><td colspan="3">595</td><td colspan="3"></td><td colspan="3">595</td></tr><tr><td colspan="3">Total operating lease liabilities</td><td>$</td><td colspan="2">817</td><td colspan="3"></td><td>$</td><td colspan="2">800</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Weighted average remaining lease term:</td></tr><tr><td colspan="3">Operating leases</td><td colspan="3">6.2 years</td><td colspan="3"></td><td colspan="3">6.4 years</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Weighted average discount rate:</td></tr><tr><td colspan="3">Operating leases</td><td colspan="2">3.5 </td><td>%</td><td colspan="3"></td><td colspan="2">3.2 </td><td>%</td></tr></table>At June 30, 2023, future payments of operating lease liabilities were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Operating Leases</td></tr><tr><td colspan="3"></td><td colspan="3">June 30, 2023</td></tr><tr><td colspan="3">1 year</td><td>$</td><td>222 </td><td></td></tr><tr><td colspan="3">2 years</td><td colspan="2">185 </td><td></td></tr><tr><td colspan="3">3 years</td><td colspan="2">137 </td><td></td></tr><tr><td colspan="3">4 years</td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">5 years</td><td colspan="2">71 </td><td></td></tr><tr><td colspan="3">Over 5 years</td><td colspan="2">196 </td><td></td></tr><tr><td colspan="3">Total lease payments</td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Less: Interest</td><td colspan="2">(94)</td><td></td></tr><tr><td colspan="3">Present value of lease liabilities </td><td>$</td><td>817 </td><td></td></tr></table>Total cash paid for amounts included in the measurement of lease liabilities was $233 and $228 for the fiscal years ended June 30, 2023 and 2022, respectively. The right-of-use assets obtained in exchange for lease liabilities were $213 and $217 for the fiscal years ended June 30, 2023 and 2022, respectively. NOTE 13 COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. We have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. Amounts in millions of dollars except per share amounts or as otherwise specified.
54 The changes in the carrying amount of goodwill for fiscal 2021, 2022, and 2023 are as follows: In Millions North America Retail Pet North America Foodservice International Joint Ventures Total Balance as of May 31, 2020 $ 6,673.7 $ 5,300.5 $ 648.8 $ 894.5 $ 405.7 $ 13,923.2 Divestiture - - - (1.2) - (1.2) Other activity, primarily foreign currency translation 15.6 - - 84.9 39.9 140.4 Balance as of May 30, 2021 6,689.3 5,300.5 648.8 978.2 445.6 14,062.4 Acquisition - 762.3 - - - 762.3 Divestitures - - - (201.8) - (201.8) Reclassified to assets held for sale (130.0) - - - - (130.0) Other activity, primarily foreign currency translation (6.4) - - (54.8) (53.2) (114.4) Balance as of May 29, 2022 6,552.9 6,062.8 648.8 721.6 392.4 14,378.5 Acquisition - - 156.8 - - 156.8 Divestitures (2.0) - - (0.4) - (2.4) Other activity, primarily foreign currency translation (8.5) - - (12.8) (0.4) (21.7) Balance as of May 28, 2023 $ 6,542.4 $ 6,062.8 $ 805.6 $ 708.4 $ 392.0 $ 14,511.2 The changes in the carrying amount of other intangible assets for fiscal 2021, 2022, and 2023 are as follows: In Millions Total Balance as of May 31, 2020 $ 7,095.8 Divestiture (5.3) Other activity, primarily amortization and foreign currency translation 60.1 Balance as of May 30, 2021 7,150.6 Acquisition 370.0 Divestitures (621.8) Intellectual property intangible asset 210.4 Other activity, primarily amortization and foreign currency translation (109.3) Balance as of May 29, 2022 6,999.9 Acquisition 3.8 Divestiture (3.6) Other activity, primarily amortization and foreign currency translation (32.5) Balance as of May 28, 2023 $ 6,967.6 Our annual goodwill and indefinite-lived intangible assets impairment test was performed on the first day of the second quarter of fiscal 2023, and we determined there was no impairment of our intangible assets as their related fair values were substantially in excess of the carrying values, except for the Uncle Toby's brand intangible asset. In addition, while having significant coverage as of our fiscal 2023 assessment date, the Progresso and EPIC brand intangible assets had risk of decreasing coverage. We will continue to monitor these businesses for potential impairment. We did not identify any indicators of impairment for any goodwill or indefinite-lived intangible assets as of May 28, 2023. NOTE 7. LEASES Our lease portfolio primarily consists of operating lease arrangements for certain warehouse and distribution space, office space, retail shops, production facilities, rail cars, production and distribution equipment, automobiles, and office equipment. Our lease costs associated with finance leases and sale-leaseback transactions and our lease income associated with lessor and sublease arrangements are not material to our Consolidated Financial Statements. , 55 Components of our lease cost are as follows: Fiscal Year In Millions 2023 2022 2021 Operating lease cost $ 127.6 $ 129.7 $ 132.7 Variable lease cost 6.1 8.5 21.8 Short-term lease cost 30.0 29.1 23.4 Maturities of our operating and finance lease obligations by fiscal year are as follows: In Millions Operating Leases Finance Leases Fiscal 2024 $ 111.9 $ 1.0 Fiscal 2025 86.4 0.6 Fiscal 2026 64.3 0.6 Fiscal 2027 42.9 0.3 Fiscal 2028 28.6 - After fiscal 2028 68.6 - Total noncancelable future lease obligations $ 402.7 $ 2.5 Less: Interest (43.8) (0.2) Present value of lease obligations $ 358.9 $ 2.3 The lease payments presented in the table above exclude $ 107.2 million of minimum lease payments for operating leases we have committed to but have not yet commenced as of May 28, 2023. The weighted-average remaining lease term and weighted-average discount rate for our operating leases are as follows: May 28, 2023 May 29, 2022 Weighted-average remaining lease term 5.2 years 4.5 years Weighted-average discount rate 4.4 % 3.8 % Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Year In Millions 2023 2022 Cash paid for amounts included in the measurement of lease liabilities $ 129.9 $ 128.7 Right of use assets obtained in exchange for new lease liabilities $ 124.4 $ 84.6 NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES FINANCIAL INSTRUMENTS The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost and market values of our marketable debt and equity securities is as follows: Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses Fiscal Year Fiscal Year Fiscal Year Fiscal Year In Millions 2023 2022 2023 2022 2023 2022 2023 2022 Available for sale debt securities $ 2.3 $ 2.3 $ 2.3 $ 2.3 $ - $ - $ - $ - Equity securities 117.5 250.1 122.7 255.3 5.2 5.2 10.0 15.1 Total $ 119.8 $ 252.4 $ 125.0 $ 257.6 $ 5.2 $ 5.2 $ 10.0 $ 15.1 As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare benefits were $ 117.2 million. , 60 The Procter & Gamble Company Long-term debt maturities during the next five fiscal years are as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ending June 30</td><td colspan="3">2024</td><td colspan="3">2025</td><td colspan="3">2026</td><td colspan="3">2027</td><td colspan="3">2028</td></tr><tr><td colspan="3">Debt maturities</td><td colspan="3">$3,951</td><td colspan="3">$1,954</td><td colspan="3">$3,364</td><td colspan="3">$4,368</td><td colspan="3">$1,380</td></tr></table> NOTE 11 ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The table below presents the changes in Accumulated other comprehensive income/(loss) attributable to Procter & Gamble (AOCI), including the reclassifications out of AOCI by component: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="24">Changes in Accumulated Other Comprehensive Income/(Loss) by Component</td></tr><tr><td colspan="3"></td><td colspan="3">Investment Securities</td><td colspan="3"></td><td colspan="3">Post-retirement Benefit Plans</td><td colspan="3"></td><td colspan="3">Foreign Currency Translation</td><td colspan="3"></td><td colspan="3">Total AOCI</td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2021</td><td>$</td><td>15 </td><td></td><td colspan="3"></td><td>$</td><td>(2,963)</td><td></td><td colspan="3"></td><td>$</td><td>(10,796)</td><td></td><td colspan="3"></td><td>$</td><td>(13,744)</td><td></td></tr><tr><td colspan="3">OCI before reclassifications (1)</td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">2,797 </td><td></td><td colspan="3"></td><td colspan="2">(1,451)</td><td></td><td colspan="3"></td><td colspan="2">1,350 </td><td></td></tr><tr><td colspan="3">Amounts reclassified to the Consolidated Statement of Earnings (2)</td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">195 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">197 </td><td></td></tr><tr><td colspan="3">Net current period OCI</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2,992 </td><td></td><td colspan="3"></td><td colspan="2">(1,450)</td><td></td><td colspan="3"></td><td colspan="2">1,547 </td><td></td></tr><tr><td colspan="3">Less: OCI attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">(10)</td><td></td><td colspan="3"></td><td colspan="2">(8)</td><td></td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2022</td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">(12,236)</td><td></td><td colspan="3"></td><td colspan="2">(12,189)</td><td></td></tr><tr><td colspan="3">OCI before reclassifications (3)</td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Amounts reclassified to the Consolidated Statement of Earnings (4)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3">Net current period OCI</td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td><td colspan="3"></td><td colspan="2">(71)</td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Less: OCI attributable to non-controlling interests</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td><td colspan="3"></td><td colspan="2">(7)</td><td></td></tr><tr><td colspan="3">BALANCE at JUNE 30, 2023</td><td>$</td><td>13 </td><td></td><td colspan="3"></td><td>$</td><td>67 </td><td></td><td colspan="3"></td><td>$</td><td>(12,300)</td><td></td><td colspan="3"></td><td>$</td><td>(12,220)</td><td></td></tr></table>(1)Net of tax (benefit)/expense of $1, $953 and $515 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (2)Net of tax (benefit)/expense of $0, $69 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2022. (3)Net of tax (benefit)/expense of $(2), $1 and $(197) for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. Income tax effects within foreign currency translation include impacts from items such as net investment hedge transactions. (4)Net of tax (benefit)/expense of $0, $8 and $0 for gains/losses on investment securities, postretirement benefit plans and foreign currency translation, respectively, for the period ended June 30, 2023. The below provides additional details on amounts reclassified from AOCI into the Consolidated Statement of Earnings: •Investment securities: amounts reclassified from AOCI into Other non-operating income, net. •Postretirement benefit plans: amounts reclassified from AOCI into Other non-operating income, net and included in the computation of net periodic postretirement costs (see Note 8). NOTE 12 LEASES The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components. Amounts in millions of dollars except per share amounts or as otherwise specified. , The Procter & Gamble Company 61 The components of the Company's total operating lease cost for the fiscal years ended June 30, 2023, 2022 and 2021, were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Fiscal years ended June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Operating lease cost</td><td>$</td><td>229 </td><td></td><td colspan="3"></td><td>$</td><td>220 </td><td></td><td colspan="3"></td><td>$</td><td>245 </td><td></td></tr><tr><td colspan="3">Variable lease cost (1)</td><td colspan="2">79 </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td></tr><tr><td colspan="3">Total lease cost</td><td>$</td><td>308 </td><td></td><td colspan="3"></td><td>$</td><td>309 </td><td></td><td colspan="3"></td><td>$</td><td>320 </td><td></td></tr></table>(1)Includes primarily costs for utilities, common area maintenance, property taxes and other operating costs associated with operating leases that are not included in the lease liability and are recognized in the period in which they are incurred. Supplemental balance sheet and other information related to leases is as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">As of June 30</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Operating leases:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Right-of-use assets (Other noncurrent assets)</td><td>$</td><td colspan="2">781</td><td colspan="3"></td><td>$</td><td colspan="2">760</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current lease liabilities (Accrued and other liabilities)</td><td colspan="3">222</td><td colspan="3"></td><td colspan="3">205</td></tr><tr><td colspan="3">Noncurrent lease liabilities (Other noncurrent liabilities)</td><td colspan="3">595</td><td colspan="3"></td><td colspan="3">595</td></tr><tr><td colspan="3">Total operating lease liabilities</td><td>$</td><td colspan="2">817</td><td colspan="3"></td><td>$</td><td colspan="2">800</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Weighted average remaining lease term:</td></tr><tr><td colspan="3">Operating leases</td><td colspan="3">6.2 years</td><td colspan="3"></td><td colspan="3">6.4 years</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Weighted average discount rate:</td></tr><tr><td colspan="3">Operating leases</td><td colspan="2">3.5 </td><td>%</td><td colspan="3"></td><td colspan="2">3.2 </td><td>%</td></tr></table>At June 30, 2023, future payments of operating lease liabilities were as follows: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Operating Leases</td></tr><tr><td colspan="3"></td><td colspan="3">June 30, 2023</td></tr><tr><td colspan="3">1 year</td><td>$</td><td>222 </td><td></td></tr><tr><td colspan="3">2 years</td><td colspan="2">185 </td><td></td></tr><tr><td colspan="3">3 years</td><td colspan="2">137 </td><td></td></tr><tr><td colspan="3">4 years</td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">5 years</td><td colspan="2">71 </td><td></td></tr><tr><td colspan="3">Over 5 years</td><td colspan="2">196 </td><td></td></tr><tr><td colspan="3">Total lease payments</td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Less: Interest</td><td colspan="2">(94)</td><td></td></tr><tr><td colspan="3">Present value of lease liabilities </td><td>$</td><td>817 </td><td></td></tr></table>Total cash paid for amounts included in the measurement of lease liabilities was $233 and $228 for the fiscal years ended June 30, 2023 and 2022, respectively. The right-of-use assets obtained in exchange for lease liabilities were $213 and $217 for the fiscal years ended June 30, 2023 and 2022, respectively. NOTE 13 COMMITMENTS AND CONTINGENCIES Guarantees In conjunction with certain transactions, primarily divestitures, we may provide routine indemnifications (e.g., indemnification for representations and warranties and retention of previously existing environmental, tax and employee liabilities) for which terms range in duration and, in some circumstances, are not explicitly defined. The maximum obligation under some indemnifications is also not explicitly stated and, as a result, the overall amount of these obligations cannot be reasonably estimated. We have not made significant payments for these indemnifications. We believe that if we were to incur a loss on any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. Amounts in millions of dollars except per share amounts or as otherwise specified.
q_com073
Compare the Dividend Payout Ratios of General Mills and J M Smucker Co for the fiscal years 2023 and 2024.
To compare the Dividend Payout Ratios of General Mills and J M Smucker Co for the fiscal years 2023 and 2024, we need to calculate the Dividend Payout Ratio using the formula: Dividend Payout Ratio = Dividends per Share / Earnings per Share. For General Mills: Fiscal Year 2024: - Dividends per Share: $2.36 - Earnings per Share (Diluted): $4.31 - Dividend Payout Ratio = $2.36 / $4.31 = 0.55 or 55% Fiscal Year 2023: - Dividends per Share: $2.16 - Earnings per Share (Diluted): $4.31 - Dividend Payout Ratio = $2.16 / $4.31 = 0.50 or 50% For J M Smucker Co: Fiscal Year 2024: - Dividends per Share: $4.24 - Earnings per Share (Diluted): $7.13 - Dividend Payout Ratio = $4.24 / $7.13 = 0.59 or 59% Fiscal Year 2023: - Dividends per Share: $4.08 - Earnings per Share (Diluted): -$0.86 (Net Loss) - Dividend Payout Ratio: Not applicable due to net loss In summary, General Mills had a lower Dividend Payout Ratio compared to J M Smucker Co in fiscal year 2024, indicating a more conservative approach to dividend distribution relative to its earnings. General Mills' Dividend Payout Ratio increased from 50% in 2023 to 55% in 2024. In contrast, J M Smucker Co's Dividend Payout Ratio was not applicable in 2023 due to a net loss, but it was 59% in 2024, reflecting a higher proportion of earnings distributed as dividends.
Comparison
43;52, 55
0001193125-23-177500;0000091419-24-000054
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 43: 43 Consolidated Statements of Comprehensive Income GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) Fiscal Year 2023 2022 2021 Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 2,609.6 $ 2,735.0 $ 2,346.0 Other comprehensive (loss) income, net of tax: Foreign currency translation (110.8) (175.9) 175.1 Net actuarial (loss) income (228.0) 101.6 353.4 Other fair value changes: Hedge derivatives 1.3 7.0 (20.7) Reclassification to earnings: Foreign currency translation (7.4) 342.2 - Hedge derivatives (18.7) 35.1 13.5 Amortization of losses and prior service costs 56.9 75.8 78.9 Other comprehensive (loss) income, net of tax (306.7) 385.8 600.2 Total comprehensive income 2,302.9 3,120.8 2,946.2 Comprehensive income (loss) attributable to redeemable and noncontrolling interests 15.4 (45.2) 121.2 Comprehensive income attributable to General Mills $ 2,287.5 $ 3,166.0 $ 2,825.0 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52 , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 55: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------------|:------------------------|:-------------|:------|:------------------|:---------------|:---|:-------------------------------------------|:--------|:---------------------------|:--------|:--------|:------|:--------|:--------|:--------|:---|:--------| | 1 | (Dollars in millions) | CommonSharesOutstanding | CommonShares | | AdditionalCapital | RetainedIncome | | AccumulatedOtherComprehensiveIncome (Loss) | | Total Shareholders' Equity | | | | | | | | | | 2 | Balance at May 1, 2021 | 108,339,057 | | $ | 27.1 | | $ | 5,527.6 | | | $ | 2,847.5 | | | $ | (277.4) | $ | 8,124.8 | | 3 | Net income (loss) | | | | | 631.7 | | | | | 631.7 | | | | | | | | | 4 | Other comprehensive income (loss) | | | | | | | 40.0 | | | 40.0 | | | | | | | | | 5 | Comprehensive income (loss) | | | | | | | | | 671.7 | | | | | | | | | | 6 | Purchase of treasury shares | (2,059,083) | | (0.5) | | (109.6) | | | (160.3) | | | | | (270.4) | | | | | | 7 | Stock plans | 178,343 | | - | | 39.9 | | | | | | | 39.9 | | | | | | | 8 | Cash dividends declared, $3.96 per common share | | | | | (425.9) | | | | | (425.9) | | | | | | | | | 10 | Balance at April 30, 2022 | 106,458,317 | | 26.6 | | 5,457.9 | | | 2,893.0 | | | (237.4) | | | 8,140.1 | | | | | 11 | Net income (loss) | | | | | (91.3) | | | | | (91.3) | | | | | | | | | 12 | Other comprehensive income (loss) | | | | | | | (1.8) | | | (1.8) | | | | | | | | | 13 | Comprehensive income (loss) | | | | | | | | | (93.1) | | | | | | | | | | 14 | Purchase of treasury shares | (2,423,196) | | (0.6) | | (132.2) | | | (238.3) | | | | | (371.1) | | | | | | 15 | Stock plans | 363,497 | | 0.1 | | 46.1 | | | (0.1) | | | | | 46.1 | | | | | | 16 | Cash dividends declared, $4.08 per common share | | | | | (431.2) | | | | | (431.2) | | | | | | | | | 18 | Balance at April 30, 2023 | 104,398,618 | | 26.1 | | 5,371.8 | | | 2,132.1 | | | (239.2) | | | 7,290.8 | | | | | 19 | Net income (loss) | | | | | 744.0 | | | | | 744.0 | | | | | | | | | 20 | Other comprehensive income (loss) | | | | | | | 4.6 | | | 4.6 | | | | | | | | | 21 | Comprehensive income (loss) | | | | | | | | | 748.6 | | | | | | | | | | 22 | Purchase of treasury shares | (2,416,945) | | (0.7) | | (132.8) | | | (242.9) | | | | | (376.4) | | | | | | 23 | Issuance of shares for acquisition | 3,989,915 | | 1.0 | | 449.2 | | | | | | | 450.2 | | | | | | | 24 | Stock plans | 222,693 | | 0.1 | | 25.7 | | | (1.1) | | | | | 24.7 | | | | | | 25 | Cash dividends declared, $4.24 per common share | | | | | (444.0) | | | | | (444.0) | | | | | | | | | 27 | Balance at April 30, 2024 | 106,194,281 | | $ | 26.5 | | $ | 5,713.9 | | | $ | 2,188.1 | | | $ | (234.6) | $ | 7,693.9 | See notes to consolidated financial statements. 55
43 Consolidated Statements of Comprehensive Income GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) Fiscal Year 2023 2022 2021 Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 2,609.6 $ 2,735.0 $ 2,346.0 Other comprehensive (loss) income, net of tax: Foreign currency translation (110.8) (175.9) 175.1 Net actuarial (loss) income (228.0) 101.6 353.4 Other fair value changes: Hedge derivatives 1.3 7.0 (20.7) Reclassification to earnings: Foreign currency translation (7.4) 342.2 - Hedge derivatives (18.7) 35.1 13.5 Amortization of losses and prior service costs 56.9 75.8 78.9 Other comprehensive (loss) income, net of tax (306.7) 385.8 600.2 Total comprehensive income 2,302.9 3,120.8 2,946.2 Comprehensive income (loss) attributable to redeemable and noncontrolling interests 15.4 (45.2) 121.2 Comprehensive income attributable to General Mills $ 2,287.5 $ 3,166.0 $ 2,825.0 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52 , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:------------------------------------------------|:------------------------|:-------------|:------|:------------------|:---------------|:---|:-------------------------------------------|:--------|:---------------------------|:--------|:--------|:------|:--------|:--------|:--------|:---|:--------| | 1 | (Dollars in millions) | CommonSharesOutstanding | CommonShares | | AdditionalCapital | RetainedIncome | | AccumulatedOtherComprehensiveIncome (Loss) | | Total Shareholders' Equity | | | | | | | | | | 2 | Balance at May 1, 2021 | 108,339,057 | | $ | 27.1 | | $ | 5,527.6 | | | $ | 2,847.5 | | | $ | (277.4) | $ | 8,124.8 | | 3 | Net income (loss) | | | | | 631.7 | | | | | 631.7 | | | | | | | | | 4 | Other comprehensive income (loss) | | | | | | | 40.0 | | | 40.0 | | | | | | | | | 5 | Comprehensive income (loss) | | | | | | | | | 671.7 | | | | | | | | | | 6 | Purchase of treasury shares | (2,059,083) | | (0.5) | | (109.6) | | | (160.3) | | | | | (270.4) | | | | | | 7 | Stock plans | 178,343 | | - | | 39.9 | | | | | | | 39.9 | | | | | | | 8 | Cash dividends declared, $3.96 per common share | | | | | (425.9) | | | | | (425.9) | | | | | | | | | 10 | Balance at April 30, 2022 | 106,458,317 | | 26.6 | | 5,457.9 | | | 2,893.0 | | | (237.4) | | | 8,140.1 | | | | | 11 | Net income (loss) | | | | | (91.3) | | | | | (91.3) | | | | | | | | | 12 | Other comprehensive income (loss) | | | | | | | (1.8) | | | (1.8) | | | | | | | | | 13 | Comprehensive income (loss) | | | | | | | | | (93.1) | | | | | | | | | | 14 | Purchase of treasury shares | (2,423,196) | | (0.6) | | (132.2) | | | (238.3) | | | | | (371.1) | | | | | | 15 | Stock plans | 363,497 | | 0.1 | | 46.1 | | | (0.1) | | | | | 46.1 | | | | | | 16 | Cash dividends declared, $4.08 per common share | | | | | (431.2) | | | | | (431.2) | | | | | | | | | 18 | Balance at April 30, 2023 | 104,398,618 | | 26.1 | | 5,371.8 | | | 2,132.1 | | | (239.2) | | | 7,290.8 | | | | | 19 | Net income (loss) | | | | | 744.0 | | | | | 744.0 | | | | | | | | | 20 | Other comprehensive income (loss) | | | | | | | 4.6 | | | 4.6 | | | | | | | | | 21 | Comprehensive income (loss) | | | | | | | | | 748.6 | | | | | | | | | | 22 | Purchase of treasury shares | (2,416,945) | | (0.7) | | (132.8) | | | (242.9) | | | | | (376.4) | | | | | | 23 | Issuance of shares for acquisition | 3,989,915 | | 1.0 | | 449.2 | | | | | | | 450.2 | | | | | | | 24 | Stock plans | 222,693 | | 0.1 | | 25.7 | | | (1.1) | | | | | 24.7 | | | | | | 25 | Cash dividends declared, $4.24 per common share | | | | | (444.0) | | | | | (444.0) | | | | | | | | | 27 | Balance at April 30, 2024 | 106,194,281 | | $ | 26.5 | | $ | 5,713.9 | | | $ | 2,188.1 | | | $ | (234.6) | $ | 7,693.9 | See notes to consolidated financial statements. 55
GENERAL MILLS INC 10-K form, page 43: 43 Consolidated Statements of Comprehensive Income GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) Fiscal Year 2023 2022 2021 Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 2,609.6 $ 2,735.0 $ 2,346.0 Other comprehensive (loss) income, net of tax: Foreign currency translation (110.8) (175.9) 175.1 Net actuarial (loss) income (228.0) 101.6 353.4 Other fair value changes: Hedge derivatives 1.3 7.0 (20.7) Reclassification to earnings: Foreign currency translation (7.4) 342.2 - Hedge derivatives (18.7) 35.1 13.5 Amortization of losses and prior service costs 56.9 75.8 78.9 Other comprehensive (loss) income, net of tax (306.7) 385.8 600.2 Total comprehensive income 2,302.9 3,120.8 2,946.2 Comprehensive income (loss) attributable to redeemable and noncontrolling interests 15.4 (45.2) 121.2 Comprehensive income attributable to General Mills $ 2,287.5 $ 3,166.0 $ 2,825.0 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52 , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 55: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">CommonSharesOutstanding</td><td colspan="3"></td><td colspan="3">CommonShares</td><td colspan="3"></td><td colspan="3">AdditionalCapital</td><td colspan="3"></td><td colspan="3">RetainedIncome</td><td colspan="3"></td><td colspan="3">AccumulatedOtherComprehensiveIncome (Loss)</td><td colspan="3"></td><td colspan="3">Total Shareholders' Equity</td></tr><tr><td colspan="3">Balance at May 1, 2021</td><td colspan="2">108,339,057 </td><td></td><td colspan="3"></td><td>$</td><td>27.1 </td><td></td><td colspan="3"></td><td>$</td><td>5,527.6 </td><td></td><td colspan="3"></td><td>$</td><td>2,847.5 </td><td></td><td colspan="3"></td><td>$</td><td>(277.4)</td><td></td><td colspan="3"></td><td>$</td><td>8,124.8 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">631.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">671.7 </td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,059,083)</td><td></td><td colspan="3"></td><td colspan="2">(0.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.6)</td><td></td><td colspan="3"></td><td colspan="2">(160.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(270.4)</td><td></td></tr><tr><td colspan="3">Stock plans</td><td colspan="2">178,343 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">39.9 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">39.9 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $3.96 per common share</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(425.9)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(425.9)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2022</td><td colspan="2">106,458,317 </td><td></td><td colspan="3"></td><td colspan="2">26.6 </td><td></td><td colspan="3"></td><td colspan="2">5,457.9 </td><td></td><td colspan="3"></td><td colspan="2">2,893.0 </td><td></td><td colspan="3"></td><td colspan="2">(237.4)</td><td></td><td colspan="3"></td><td colspan="2">8,140.1 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(91.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(91.3)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(93.1)</td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,423,196)</td><td></td><td colspan="3"></td><td colspan="2">(0.6)</td><td></td><td colspan="3"></td><td colspan="2">(132.2)</td><td></td><td colspan="3"></td><td colspan="2">(238.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(371.1)</td><td></td></tr><tr><td colspan="3">Stock plans</td><td colspan="2">363,497 </td><td></td><td colspan="3"></td><td colspan="2">0.1 </td><td></td><td colspan="3"></td><td colspan="2">46.1 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">46.1 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $4.08 per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(431.2)</td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="2">(431.2)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2023</td><td colspan="2">104,398,618 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">5,371.8 </td><td></td><td colspan="3"></td><td colspan="2">2,132.1 </td><td></td><td colspan="3"></td><td colspan="2">(239.2)</td><td></td><td colspan="3"></td><td colspan="2">7,290.8 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">744.0 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">744.0 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">4.6 </td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">748.6 </td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,416,945)</td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(132.8)</td><td></td><td colspan="3"></td><td colspan="2">(242.9)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(376.4)</td><td></td></tr><tr><td colspan="3">Issuance of shares for acquisition</td><td colspan="2">3,989,915 </td><td></td><td colspan="3"></td><td colspan="2">1.0 </td><td></td><td colspan="3"></td><td colspan="2">449.2 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">450.2 </td><td></td></tr><tr><td colspan="3">Stock plans </td><td colspan="2">222,693 </td><td></td><td colspan="3"></td><td colspan="2">0.1 </td><td></td><td colspan="3"></td><td colspan="2">25.7 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24.7 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $4.24 per common share</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(444.0)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(444.0)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2024</td><td colspan="2">106,194,281 </td><td></td><td colspan="3"></td><td>$</td><td>26.5 </td><td></td><td colspan="3"></td><td>$</td><td>5,713.9 </td><td></td><td colspan="3"></td><td>$</td><td>2,188.1 </td><td></td><td colspan="3"></td><td>$</td><td>(234.6)</td><td></td><td colspan="3"></td><td>$</td><td>7,693.9 </td><td></td></tr></table>See notes to consolidated financial statements. 55
43 Consolidated Statements of Comprehensive Income GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions) Fiscal Year 2023 2022 2021 Net earnings, including earnings attributable to redeemable and noncontrolling interests $ 2,609.6 $ 2,735.0 $ 2,346.0 Other comprehensive (loss) income, net of tax: Foreign currency translation (110.8) (175.9) 175.1 Net actuarial (loss) income (228.0) 101.6 353.4 Other fair value changes: Hedge derivatives 1.3 7.0 (20.7) Reclassification to earnings: Foreign currency translation (7.4) 342.2 - Hedge derivatives (18.7) 35.1 13.5 Amortization of losses and prior service costs 56.9 75.8 78.9 Other comprehensive (loss) income, net of tax (306.7) 385.8 600.2 Total comprehensive income 2,302.9 3,120.8 2,946.2 Comprehensive income (loss) attributable to redeemable and noncontrolling interests 15.4 (45.2) 121.2 Comprehensive income attributable to General Mills $ 2,287.5 $ 3,166.0 $ 2,825.0 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52 , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">CommonSharesOutstanding</td><td colspan="3"></td><td colspan="3">CommonShares</td><td colspan="3"></td><td colspan="3">AdditionalCapital</td><td colspan="3"></td><td colspan="3">RetainedIncome</td><td colspan="3"></td><td colspan="3">AccumulatedOtherComprehensiveIncome (Loss)</td><td colspan="3"></td><td colspan="3">Total Shareholders' Equity</td></tr><tr><td colspan="3">Balance at May 1, 2021</td><td colspan="2">108,339,057 </td><td></td><td colspan="3"></td><td>$</td><td>27.1 </td><td></td><td colspan="3"></td><td>$</td><td>5,527.6 </td><td></td><td colspan="3"></td><td>$</td><td>2,847.5 </td><td></td><td colspan="3"></td><td>$</td><td>(277.4)</td><td></td><td colspan="3"></td><td>$</td><td>8,124.8 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">631.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">671.7 </td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,059,083)</td><td></td><td colspan="3"></td><td colspan="2">(0.5)</td><td></td><td colspan="3"></td><td colspan="2">(109.6)</td><td></td><td colspan="3"></td><td colspan="2">(160.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(270.4)</td><td></td></tr><tr><td colspan="3">Stock plans</td><td colspan="2">178,343 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">39.9 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">39.9 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $3.96 per common share</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(425.9)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(425.9)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2022</td><td colspan="2">106,458,317 </td><td></td><td colspan="3"></td><td colspan="2">26.6 </td><td></td><td colspan="3"></td><td colspan="2">5,457.9 </td><td></td><td colspan="3"></td><td colspan="2">2,893.0 </td><td></td><td colspan="3"></td><td colspan="2">(237.4)</td><td></td><td colspan="3"></td><td colspan="2">8,140.1 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(91.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(91.3)</td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(93.1)</td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,423,196)</td><td></td><td colspan="3"></td><td colspan="2">(0.6)</td><td></td><td colspan="3"></td><td colspan="2">(132.2)</td><td></td><td colspan="3"></td><td colspan="2">(238.3)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(371.1)</td><td></td></tr><tr><td colspan="3">Stock plans</td><td colspan="2">363,497 </td><td></td><td colspan="3"></td><td colspan="2">0.1 </td><td></td><td colspan="3"></td><td colspan="2">46.1 </td><td></td><td colspan="3"></td><td colspan="2">(0.1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">46.1 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $4.08 per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(431.2)</td><td></td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="2">(431.2)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2023</td><td colspan="2">104,398,618 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td><td colspan="3"></td><td colspan="2">5,371.8 </td><td></td><td colspan="3"></td><td colspan="2">2,132.1 </td><td></td><td colspan="3"></td><td colspan="2">(239.2)</td><td></td><td colspan="3"></td><td colspan="2">7,290.8 </td><td></td></tr><tr><td colspan="3">Net income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">744.0 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">744.0 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">4.6 </td><td></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">748.6 </td><td></td></tr><tr><td colspan="3">Purchase of treasury shares</td><td colspan="2">(2,416,945)</td><td></td><td colspan="3"></td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">(132.8)</td><td></td><td colspan="3"></td><td colspan="2">(242.9)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(376.4)</td><td></td></tr><tr><td colspan="3">Issuance of shares for acquisition</td><td colspan="2">3,989,915 </td><td></td><td colspan="3"></td><td colspan="2">1.0 </td><td></td><td colspan="3"></td><td colspan="2">449.2 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">450.2 </td><td></td></tr><tr><td colspan="3">Stock plans </td><td colspan="2">222,693 </td><td></td><td colspan="3"></td><td colspan="2">0.1 </td><td></td><td colspan="3"></td><td colspan="2">25.7 </td><td></td><td colspan="3"></td><td colspan="2">(1.1)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">24.7 </td><td></td></tr><tr><td colspan="3">Cash dividends declared, $4.24 per common share</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(444.0)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(444.0)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at April 30, 2024</td><td colspan="2">106,194,281 </td><td></td><td colspan="3"></td><td>$</td><td>26.5 </td><td></td><td colspan="3"></td><td>$</td><td>5,713.9 </td><td></td><td colspan="3"></td><td>$</td><td>2,188.1 </td><td></td><td colspan="3"></td><td>$</td><td>(234.6)</td><td></td><td colspan="3"></td><td>$</td><td>7,693.9 </td><td></td></tr></table>See notes to consolidated financial statements. 55
q_com074
Compare the revenue growth rates of General Mills and J M Smucker Co for the fiscal years 2023 and 2024.
To compare the revenue growth rates of General Mills and J M Smucker Co for the fiscal years 2023 and 2024, we need to calculate the revenue growth rate using the formula: Revenue Growth Rate = (Current Year Revenue - Previous Year Revenue) / Previous Year Revenue. For General Mills: - Revenue: $19,857.2 million - Previous Year Revenue: $20,094.2 million - Revenue Growth Rate = ($19,857.2 million - $20,094.2 million) / $20,094.2 million = -0.012 or -1.2% - Fiscal Year 2023: - Revenue: $20,094.2 million - Previous Year Revenue: $18,992.8 million - Revenue Growth Rate = ($20,094.2 million - $18,992.8 million) / $18,992.8 million = 0.058 or 5.8% For J M Smucker Co: - Fiscal Year 2024: - Revenue: $8,178.7 million - Previous Year Revenue: $8,529.2 million - Revenue Growth Rate = ($8,178.7 million - $8,529.2 million) / $8,529.2 million = -0.041 or -4.1% - Fiscal Year 2023: - Revenue: $8,529.2 million - Previous Year Revenue: $7,998.9 million - Revenue Growth Rate = ($8,529.2 million - $7,998.9 million) / $7,998.9 million = 0.066 or 6.6% In summary, General Mills experienced a slight decline in revenue growth rate from 5.8% in fiscal year 2023 to -1.2% in fiscal year 2024. On the other hand, J M Smucker Co also experienced a decline in revenue growth rate from 6.6% in fiscal year 2023 to -4.1% in fiscal year 2024. Both companies faced a decrease in revenue growth rate in fiscal year 2024 compared to fiscal year 2023, with J M Smucker Co experiencing a more significant decline.
Comparison
42;52
0001193125-23-177500;0000091419-24-000054
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52
q_com075
Compare the Gross Margin growth rates of General Mills and J M Smucker Co for the fiscal years 2023 and 2024.
The Gross Margin growth rates of General Mills and J M Smucker Co for the fiscal years 2023 and 2024, we need to calculate the Gross Margin growth rate using the formula: Gross Margin Growth Rate = (Current Year Gross Margin - Previous Year Gross Margin) / Previous Year Gross Margin. For General Mills: - Fiscal Year 2024: - Gross Margin: 34.9% - Previous Year Gross Margin: 32.6% - Gross Margin Growth Rate = (34.9% - 32.6%) / 32.6% = 0.0707 or 7.07% - Fiscal Year 2023: - Gross Margin: 32.6% - Previous Year Gross Margin: 33.7% - Gross Margin Growth Rate = (32.6% - 33.7%) / 33.7% = -0.0326 or -3.26% For J M Smucker Co: - Fiscal Year 2024: - Gross Margin: 38.1% - Previous Year Gross Margin: 32.8% - Gross Margin Growth Rate = (38.1% - 32.8%) / 32.8% = 0.161 or 16.1% Fiscal Year 2023: - Gross Margin: 32.8% - Previous Year Gross Margin: 33.8% - Gross Margin Growth Rate = (32.8% - 33.8%) / 33.8% = -0.0296 or -2.96% In summary, both General Mills and J M Smucker Co experienced an increase in Gross Margin growth rate in fiscal year 2024 compared to fiscal year 2023. General Mills' Gross Margin growth rate increased from -3.26% in fiscal year 2023 to 7.07% in fiscal year 2024. Similarly, J M Smucker Co's Gross Margin growth rate increased from -2.96% in fiscal year 2023 to 16.1% in fiscal year 2024. J M Smucker Co had a higher Gross Margin growth rate compared to General Mills in fiscal year 2024.
Comparison
42;52
0001193125-23-177500;0000091419-24-000054
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52
q_com076
Compare the Net Working Capital Turnover Ratios of General Mills and J M Smucker Co for the fiscal years 2023 and 2024.
To compare the Net Working Capital Turnover Ratios of General Mills and J M Smucker Co for the fiscal years 2023 and 2024, we need to calculate the Net Working Capital Turnover Ratio using the formula: Net Working Capital Turnover Ratio = Net Sales / Average Working Capital. For General Mills: Fiscal Year 2024: - Net Sales: $19,857.2 million - Average Working Capital: (Current Assets - Current Liabilities) - Average Working Capital = ($4,580.9 million - $7,033.1 million + $5,176.4 million - $7,535.7 million) / 2 = -$2,405.75 million - Net Working Capital Turnover Ratio = $19,857.2 million / -$2,405.75 million = -8.26 Fiscal Year 2023: - Net Sales: $20,094.2 million - Average Working Capital = ($5,176.4 million - $7,535.7 million + $4,580.9 million - $7,033.1 million) / 2 = -$2,405.75 million - Net Working Capital Turnover Ratio = $20,094.2 million / -$2,405.75 million = -8.35 For J M Smucker Co: - Fiscal Year 2024: - Net Sales: $8,178.7 million - Average Working Capital: (Current Assets - Current Liabilities) - Average Working Capital = ($1,966.9 million - $3,761.1 million + $2,858.7 million - $1,986.7 million) / 2 = -$461.1 million - Net Working Capital Turnover Ratio = $8,178.7 million / -$461.1 million = -17.74 Fiscal Year 2023: - Net Sales: $8,529.2 million - Average Working Capital = ($2,858.7 million - $1,986.7 million + $1,966.9 million - $3,761.1 million) / 2 = -$461.1 million - Net Working Capital Turnover Ratio = $8,529.2 million / -$461.1 million = -18.49 both General Mills and J M Smucker Co had negative Net Working Capital Turnover Ratios in fiscal years 2023 and 2024, indicating that their current liabilities exceeded their current assets. General Mills' Net Working Capital Turnover Ratio improved slightly from -8.35 in fiscal year 2023 to -8.26 in fiscal year 2024. In contrast, J M Smucker Co's Net Working Capital Turnover Ratio also improved from -18.49 in fiscal year 2023 to -17.74 in fiscal year 2024. J M Smucker Co had a higher (more negative) Net Working Capital Turnover Ratio compared to General Mills in both fiscal years.
Comparison
42, 44;52, 53
0001193125-23-177500;0000091419-24-000054
ITEM 7A - QUANTITATIVE;Item 8. Financial Statements and Supplementary Data.
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , GENERAL MILLS INC 10-K form, page 44: 44 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) May 28, 2023 May 29, 2022 ASSETS Current assets: Cash and cash equivalents $ 585.5 $ 569.4 Receivables 1,683.2 1,692.1 Inventories 2,172.0 1,867.3 Prepaid expenses and other current assets 735.7 802.1 Assets held for sale - 158.9 Total current assets 5,176.4 5,089.8 Land, buildings, and equipment 3,636.2 3,393.8 Goodwill 14,511.2 14,378.5 Other intangible assets 6,967.6 6,999.9 Other assets 1,160.3 1,228.1 Total assets $ 31,451.7 $ 31,090.1 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 4,194.2 $ 3,982.3 Current portion of long-term debt 1,709.1 1,674.2 Notes payable 31.7 811.4 Other current liabilities 1,600.7 1,552.0 Total current liabilities 7,535.7 8,019.9 Long-term debt 9,965.1 9,134.8 Deferred income taxes 2,110.9 2,218.3 Other liabilities 1,140.0 929.1 Total liabilities 20,751.7 20,302.1 Stockholders' equity: Common stock, 754.6 shares issued, $ 0.10 par value 75.5 75.5 Additional paid-in capital 1,222.4 1,182.9 Retained earnings 19,838.6 18,532.6 Common stock in treasury, at cost, shares of 168 .0 and 155.7 (8,410.0) (7,278.1) Accumulated other comprehensive loss (2,276.9) (1,970.5) Total stockholders' equity 10,449.6 10,542.4 Noncontrolling interests 250.4 245.6 Total equity 10,700.0 10,788.0 Total liabilities and equity $ 31,451.7 $ 31,090.1 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52 , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 53: THE J. M. SMUCKER COMPANY CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:---------|:-----|:----------|:---|:---------| | 1 | | April 30, | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | | | | 3 | ASSETS | | | | | | | | 4 | Current Assets | | | | | | | | 5 | Cash and cash equivalents | $ | 62.0 | | | $ | 655.8 | | 6 | Trade receivables – net | 736.5 | | | 597.6 | | | | 7 | Inventories: | | | | | | | | 8 | Finished products | 639.4 | | | 657.6 | | | | 9 | Raw materials | 399.5 | | | 352.2 | | | | 10 | Total Inventory | 1,038.9 | | | 1,009.8 | | | | 11 | Investment in equity securities | - | | | 487.8 | | | | 12 | Other current assets | 129.5 | | | 107.7 | | | | 13 | Total Current Assets | 1,966.9 | | | 2,858.7 | | | | 14 | Property, Plant, and Equipment | | | | | | | | 15 | Land and land improvements | 152.4 | | | 131.0 | | | | 16 | Buildings and fixtures | 1,174.9 | | | 956.1 | | | | 17 | Machinery and equipment | 2,933.7 | | | 2,443.5 | | | | 18 | Construction in progress | 911.7 | | | 629.4 | | | | 19 | Gross Property, Plant, and Equipment | 5,172.7 | | | 4,160.0 | | | | 20 | Accumulated depreciation | (2,100.0) | | | (1,920.5) | | | | 21 | Total Property, Plant, and Equipment | 3,072.7 | | | 2,239.5 | | | | 22 | Other Noncurrent Assets | | | | | | | | 23 | Operating lease right-of-use assets | 174.6 | | | 103.0 | | | | 24 | Goodwill | 7,649.9 | | | 5,216.9 | | | | 25 | Other intangible assets – net | 7,255.4 | | | 4,429.3 | | | | 27 | Other noncurrent assets | 154.2 | | | 144.0 | | | | 28 | Total Other Noncurrent Assets | 15,234.1 | | | 9,893.2 | | | | 29 | Total Assets | $ | 20,273.7 | | | $ | 14,991.4 | | 30 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | 31 | Current Liabilities | | | | | | | | 32 | Accounts payable | $ | 1,336.2 | | | $ | 1,392.6 | | 33 | Accrued compensation | 151.5 | | | 112.9 | | | | 34 | Accrued trade marketing and merchandising | 214.3 | | | 187.7 | | | | 35 | Dividends payable | 112.8 | | | 106.3 | | | | 38 | Current portion of long-term debt | 999.3 | | | - | | | | 39 | Short-term borrowings | 591.0 | | | - | | | | 40 | Current operating lease liabilities | 40.5 | | | 33.2 | | | | 41 | Other current liabilities | 315.5 | | | 154.0 | | | | 42 | Total Current Liabilities | 3,761.1 | | | 1,986.7 | | | | 43 | Noncurrent Liabilities | | | | | | | | 44 | Long-term debt, less current portion | 6,773.7 | | | 4,314.2 | | | | 45 | Defined benefit pensions | 54.1 | | | 62.1 | | | | 46 | Other postretirement benefits | 44.3 | | | 49.1 | | | | 47 | Deferred income taxes | 1,737.4 | | | 1,138.9 | | | | 48 | Noncurrent operating lease liabilities | 143.5 | | | 77.2 | | | | 49 | Other noncurrent liabilities | 65.7 | | | 72.4 | | | | 50 | Total Noncurrent Liabilities | 8,818.7 | | | 5,713.9 | | | | 51 | Total Liabilities | 12,579.8 | | | 7,700.6 | | | | 52 | Shareholders' Equity | | | | | | | | 53 | Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none | - | | | - | | | | 54 | Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 106,194,281 at April 30, 2024, and 104,398,618 at April 30, 2023 (net of 44,293,364 and 42,099,112 treasury shares, respectively), at stated value | 26.5 | | | 26.1 | | | | 55 | Additional capital | 5,713.9 | | | 5,371.8 | | | | 56 | Retained income | 2,188.1 | | | 2,132.1 | | | | 57 | Accumulated other comprehensive income (loss) | (234.6) | | | (239.2) | | | | 58 | Total Shareholders' Equity | 7,693.9 | | | 7,290.8 | | | | 59 | Total Liabilities and Shareholders' Equity | $ | 20,273.7 | | | $ | 14,991.4 | See notes to consolidated financial statements. 53
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , 44 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) May 28, 2023 May 29, 2022 ASSETS Current assets: Cash and cash equivalents $ 585.5 $ 569.4 Receivables 1,683.2 1,692.1 Inventories 2,172.0 1,867.3 Prepaid expenses and other current assets 735.7 802.1 Assets held for sale - 158.9 Total current assets 5,176.4 5,089.8 Land, buildings, and equipment 3,636.2 3,393.8 Goodwill 14,511.2 14,378.5 Other intangible assets 6,967.6 6,999.9 Other assets 1,160.3 1,228.1 Total assets $ 31,451.7 $ 31,090.1 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 4,194.2 $ 3,982.3 Current portion of long-term debt 1,709.1 1,674.2 Notes payable 31.7 811.4 Other current liabilities 1,600.7 1,552.0 Total current liabilities 7,535.7 8,019.9 Long-term debt 9,965.1 9,134.8 Deferred income taxes 2,110.9 2,218.3 Other liabilities 1,140.0 929.1 Total liabilities 20,751.7 20,302.1 Stockholders' equity: Common stock, 754.6 shares issued, $ 0.10 par value 75.5 75.5 Additional paid-in capital 1,222.4 1,182.9 Retained earnings 19,838.6 18,532.6 Common stock in treasury, at cost, shares of 168 .0 and 155.7 (8,410.0) (7,278.1) Accumulated other comprehensive loss (2,276.9) (1,970.5) Total stockholders' equity 10,449.6 10,542.4 Noncontrolling interests 250.4 245.6 Total equity 10,700.0 10,788.0 Total liabilities and equity $ 31,451.7 $ 31,090.1 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------|:---------------------|:--------|:-----|:--------|:-----|:--------|:--------|:---|:--------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions, except per share data) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net sales | $ | 8,178.7 | | | $ | 8,529.2 | | $ | 7,998.9 | | 4 | Cost of products sold (A) | 5,063.3 | | | 5,727.4 | | | 5,298.2 | | | | 5 | Gross Profit | 3,115.4 | | | 2,801.8 | | | 2,700.7 | | | | 6 | Selling, distribution, and administrative expenses | 1,446.2 | | | 1,455.0 | | | 1,360.3 | | | | 7 | Amortization | 191.1 | | | 206.9 | | | 223.6 | | | | 9 | Other intangible assets impairment charges | - | | | - | | | 150.4 | | | | 10 | Other special project costs (A) | 130.2 | | | 4.7 | | | 8.0 | | | | 11 | Loss (gain) on divestitures – net | 12.9 | | | 1,018.5 | | | (9.6) | | | | 12 | Other operating expense (income) – net | 29.2 | | | (40.8) | | | (55.8) | | | | 13 | Operating Income | 1,305.8 | | | 157.5 | | | 1,023.8 | | | | 14 | Interest expense – net | (264.3) | | | (152.0) | | | (160.9) | | | | 15 | Other debt costs (A) | (19.5) | | | - | | | - | | | | 16 | Other income (expense) – net | (25.6) | | | (14.7) | | | (19.1) | | | | 17 | Income (Loss) Before Income Taxes | 996.4 | | | (9.2) | | | 843.8 | | | | 18 | Income tax expense | 252.4 | | | 82.1 | | | 212.1 | | | | 19 | Net Income (Loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 20 | Earnings per common share: | | | | | | | | | | | 21 | Net Income (Loss) | $ | 7.14 | | | $ | (0.86) | | $ | 5.84 | | 22 | Net Income (Loss) – Assuming Dilution | $ | 7.13 | | | $ | (0.86) | | $ | 5.83 | (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------|:---------------------|:------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | Year Ended April 30, | | | | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | 2022 | | | | | | 3 | Net income (loss) | $ | 744.0 | | | $ | (91.3) | | $ | 631.7 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | 5 | Foreign currency translation adjustments | (4.9) | | | (13.2) | | | (12.1) | | | | 6 | Cash flow hedging derivative activity, net of tax | 10.5 | | | 10.3 | | | 10.9 | | | | 7 | Pension and other postretirement benefit plans activity, net of tax | (0.7) | | | 1.5 | | | 43.1 | | | | 8 | Available-for-sale securities activity, net of tax | (0.3) | | | (0.4) | | | (1.9) | | | | 9 | Total Other Comprehensive Income (Loss) | 4.6 | | | (1.8) | | | 40.0 | | | | 10 | Comprehensive Income (Loss) | $ | 748.6 | | | $ | (93.1) | | $ | 671.7 | See notes to consolidated financial statements. 52 , THE J. M. SMUCKER COMPANY CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:---------|:-----|:----------|:---|:---------| | 1 | | April 30, | | | | | | | 2 | (Dollars in millions) | 2024 | | 2023 | | | | | 3 | ASSETS | | | | | | | | 4 | Current Assets | | | | | | | | 5 | Cash and cash equivalents | $ | 62.0 | | | $ | 655.8 | | 6 | Trade receivables – net | 736.5 | | | 597.6 | | | | 7 | Inventories: | | | | | | | | 8 | Finished products | 639.4 | | | 657.6 | | | | 9 | Raw materials | 399.5 | | | 352.2 | | | | 10 | Total Inventory | 1,038.9 | | | 1,009.8 | | | | 11 | Investment in equity securities | - | | | 487.8 | | | | 12 | Other current assets | 129.5 | | | 107.7 | | | | 13 | Total Current Assets | 1,966.9 | | | 2,858.7 | | | | 14 | Property, Plant, and Equipment | | | | | | | | 15 | Land and land improvements | 152.4 | | | 131.0 | | | | 16 | Buildings and fixtures | 1,174.9 | | | 956.1 | | | | 17 | Machinery and equipment | 2,933.7 | | | 2,443.5 | | | | 18 | Construction in progress | 911.7 | | | 629.4 | | | | 19 | Gross Property, Plant, and Equipment | 5,172.7 | | | 4,160.0 | | | | 20 | Accumulated depreciation | (2,100.0) | | | (1,920.5) | | | | 21 | Total Property, Plant, and Equipment | 3,072.7 | | | 2,239.5 | | | | 22 | Other Noncurrent Assets | | | | | | | | 23 | Operating lease right-of-use assets | 174.6 | | | 103.0 | | | | 24 | Goodwill | 7,649.9 | | | 5,216.9 | | | | 25 | Other intangible assets – net | 7,255.4 | | | 4,429.3 | | | | 27 | Other noncurrent assets | 154.2 | | | 144.0 | | | | 28 | Total Other Noncurrent Assets | 15,234.1 | | | 9,893.2 | | | | 29 | Total Assets | $ | 20,273.7 | | | $ | 14,991.4 | | 30 | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | 31 | Current Liabilities | | | | | | | | 32 | Accounts payable | $ | 1,336.2 | | | $ | 1,392.6 | | 33 | Accrued compensation | 151.5 | | | 112.9 | | | | 34 | Accrued trade marketing and merchandising | 214.3 | | | 187.7 | | | | 35 | Dividends payable | 112.8 | | | 106.3 | | | | 38 | Current portion of long-term debt | 999.3 | | | - | | | | 39 | Short-term borrowings | 591.0 | | | - | | | | 40 | Current operating lease liabilities | 40.5 | | | 33.2 | | | | 41 | Other current liabilities | 315.5 | | | 154.0 | | | | 42 | Total Current Liabilities | 3,761.1 | | | 1,986.7 | | | | 43 | Noncurrent Liabilities | | | | | | | | 44 | Long-term debt, less current portion | 6,773.7 | | | 4,314.2 | | | | 45 | Defined benefit pensions | 54.1 | | | 62.1 | | | | 46 | Other postretirement benefits | 44.3 | | | 49.1 | | | | 47 | Deferred income taxes | 1,737.4 | | | 1,138.9 | | | | 48 | Noncurrent operating lease liabilities | 143.5 | | | 77.2 | | | | 49 | Other noncurrent liabilities | 65.7 | | | 72.4 | | | | 50 | Total Noncurrent Liabilities | 8,818.7 | | | 5,713.9 | | | | 51 | Total Liabilities | 12,579.8 | | | 7,700.6 | | | | 52 | Shareholders' Equity | | | | | | | | 53 | Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none | - | | | - | | | | 54 | Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 106,194,281 at April 30, 2024, and 104,398,618 at April 30, 2023 (net of 44,293,364 and 42,099,112 treasury shares, respectively), at stated value | 26.5 | | | 26.1 | | | | 55 | Additional capital | 5,713.9 | | | 5,371.8 | | | | 56 | Retained income | 2,188.1 | | | 2,132.1 | | | | 57 | Accumulated other comprehensive income (loss) | (234.6) | | | (239.2) | | | | 58 | Total Shareholders' Equity | 7,693.9 | | | 7,290.8 | | | | 59 | Total Liabilities and Shareholders' Equity | $ | 20,273.7 | | | $ | 14,991.4 | See notes to consolidated financial statements. 53
GENERAL MILLS INC 10-K form, page 42: 42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , GENERAL MILLS INC 10-K form, page 44: 44 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) May 28, 2023 May 29, 2022 ASSETS Current assets: Cash and cash equivalents $ 585.5 $ 569.4 Receivables 1,683.2 1,692.1 Inventories 2,172.0 1,867.3 Prepaid expenses and other current assets 735.7 802.1 Assets held for sale - 158.9 Total current assets 5,176.4 5,089.8 Land, buildings, and equipment 3,636.2 3,393.8 Goodwill 14,511.2 14,378.5 Other intangible assets 6,967.6 6,999.9 Other assets 1,160.3 1,228.1 Total assets $ 31,451.7 $ 31,090.1 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 4,194.2 $ 3,982.3 Current portion of long-term debt 1,709.1 1,674.2 Notes payable 31.7 811.4 Other current liabilities 1,600.7 1,552.0 Total current liabilities 7,535.7 8,019.9 Long-term debt 9,965.1 9,134.8 Deferred income taxes 2,110.9 2,218.3 Other liabilities 1,140.0 929.1 Total liabilities 20,751.7 20,302.1 Stockholders' equity: Common stock, 754.6 shares issued, $ 0.10 par value 75.5 75.5 Additional paid-in capital 1,222.4 1,182.9 Retained earnings 19,838.6 18,532.6 Common stock in treasury, at cost, shares of 168 .0 and 155.7 (8,410.0) (7,278.1) Accumulated other comprehensive loss (2,276.9) (1,970.5) Total stockholders' equity 10,449.6 10,542.4 Noncontrolling interests 250.4 245.6 Total equity 10,700.0 10,788.0 Total liabilities and equity $ 31,451.7 $ 31,090.1 See accompanying notes to consolidated financial statements. , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 52: THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52 , J M SMUCKER Co 10-K form for the fiscal year ended 2024-04-30, page 53: THE J. M. SMUCKER COMPANY CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9"> April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>62.0 </td><td></td><td colspan="3"></td><td>$</td><td>655.8 </td><td></td></tr><tr><td colspan="3">Trade receivables – net</td><td colspan="2">736.5 </td><td></td><td colspan="3"></td><td colspan="2">597.6 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Finished products</td><td colspan="2">639.4 </td><td></td><td colspan="3"></td><td colspan="2">657.6 </td><td></td></tr><tr><td colspan="3">Raw materials</td><td colspan="2">399.5 </td><td></td><td colspan="3"></td><td colspan="2">352.2 </td><td></td></tr><tr><td colspan="3">Total Inventory</td><td colspan="2">1,038.9 </td><td></td><td colspan="3"></td><td colspan="2">1,009.8 </td><td></td></tr><tr><td colspan="3">Investment in equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">487.8 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">129.5 </td><td></td><td colspan="3"></td><td colspan="2">107.7 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">1,966.9 </td><td></td><td colspan="3"></td><td colspan="2">2,858.7 </td><td></td></tr><tr><td colspan="3">Property, Plant, and Equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land and land improvements</td><td colspan="2">152.4 </td><td></td><td colspan="3"></td><td colspan="2">131.0 </td><td></td></tr><tr><td colspan="3">Buildings and fixtures</td><td colspan="2">1,174.9 </td><td></td><td colspan="3"></td><td colspan="2">956.1 </td><td></td></tr><tr><td colspan="3">Machinery and equipment</td><td colspan="2">2,933.7 </td><td></td><td colspan="3"></td><td colspan="2">2,443.5 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">911.7 </td><td></td><td colspan="3"></td><td colspan="2">629.4 </td><td></td></tr><tr><td colspan="3">Gross Property, Plant, and Equipment</td><td colspan="2">5,172.7 </td><td></td><td colspan="3"></td><td colspan="2">4,160.0 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(2,100.0)</td><td></td><td colspan="3"></td><td colspan="2">(1,920.5)</td><td></td></tr><tr><td colspan="3">Total Property, Plant, and Equipment</td><td colspan="2">3,072.7 </td><td></td><td colspan="3"></td><td colspan="2">2,239.5 </td><td></td></tr><tr><td colspan="3">Other Noncurrent Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">174.6 </td><td></td><td colspan="3"></td><td colspan="2">103.0 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">7,649.9 </td><td></td><td colspan="3"></td><td colspan="2">5,216.9 </td><td></td></tr><tr><td colspan="3">Other intangible assets – net</td><td colspan="2">7,255.4 </td><td></td><td colspan="3"></td><td colspan="2">4,429.3 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">154.2 </td><td></td><td colspan="3"></td><td colspan="2">144.0 </td><td></td></tr><tr><td colspan="3">Total Other Noncurrent Assets</td><td colspan="2">15,234.1 </td><td></td><td colspan="3"></td><td colspan="2">9,893.2 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>20,273.7 </td><td></td><td colspan="3"></td><td>$</td><td>14,991.4 </td><td></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>1,336.2 </td><td></td><td colspan="3"></td><td>$</td><td>1,392.6 </td><td></td></tr><tr><td colspan="3">Accrued compensation</td><td colspan="2">151.5 </td><td></td><td colspan="3"></td><td colspan="2">112.9 </td><td></td></tr><tr><td colspan="3">Accrued trade marketing and merchandising</td><td colspan="2">214.3 </td><td></td><td colspan="3"></td><td colspan="2">187.7 </td><td></td></tr><tr><td colspan="3">Dividends payable</td><td colspan="2">112.8 </td><td></td><td colspan="3"></td><td colspan="2">106.3 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current portion of long-term debt</td><td colspan="2">999.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">591.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Current operating lease liabilities</td><td colspan="2">40.5 </td><td></td><td colspan="3"></td><td colspan="2">33.2 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">315.5 </td><td></td><td colspan="3"></td><td colspan="2">154.0 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">3,761.1 </td><td></td><td colspan="3"></td><td colspan="2">1,986.7 </td><td></td></tr><tr><td colspan="3">Noncurrent Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt, less current portion</td><td colspan="2">6,773.7 </td><td></td><td colspan="3"></td><td colspan="2">4,314.2 </td><td></td></tr><tr><td colspan="3">Defined benefit pensions</td><td colspan="2">54.1 </td><td></td><td colspan="3"></td><td colspan="2">62.1 </td><td></td></tr><tr><td colspan="3">Other postretirement benefits</td><td colspan="2">44.3 </td><td></td><td colspan="3"></td><td colspan="2">49.1 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">1,737.4 </td><td></td><td colspan="3"></td><td colspan="2">1,138.9 </td><td></td></tr><tr><td colspan="3">Noncurrent operating lease liabilities</td><td colspan="2">143.5 </td><td></td><td colspan="3"></td><td colspan="2">77.2 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">65.7 </td><td></td><td colspan="3"></td><td colspan="2">72.4 </td><td></td></tr><tr><td colspan="3">Total Noncurrent Liabilities</td><td colspan="2">8,818.7 </td><td></td><td colspan="3"></td><td colspan="2">5,713.9 </td><td></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="2">12,579.8 </td><td></td><td colspan="3"></td><td colspan="2">7,700.6 </td><td></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 106,194,281 at April 30, 2024, and 104,398,618 at April 30, 2023 (net of 44,293,364 and 42,099,112 treasury shares, respectively), at stated value</td><td colspan="2">26.5 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td></tr><tr><td colspan="3">Additional capital</td><td colspan="2">5,713.9 </td><td></td><td colspan="3"></td><td colspan="2">5,371.8 </td><td></td></tr><tr><td colspan="3">Retained income</td><td colspan="2">2,188.1 </td><td></td><td colspan="3"></td><td colspan="2">2,132.1 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(234.6)</td><td></td><td colspan="3"></td><td colspan="2">(239.2)</td><td></td></tr><tr><td colspan="3">Total Shareholders' Equity</td><td colspan="2">7,693.9 </td><td></td><td colspan="3"></td><td colspan="2">7,290.8 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Shareholders' Equity</td><td>$</td><td>20,273.7 </td><td></td><td colspan="3"></td><td>$</td><td>14,991.4 </td><td></td></tr></table>See notes to consolidated financial statements. 53
42 Consolidated Statements of Earnings GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except per Share Data) Fiscal Year 2023 2022 2021 Net sales $ 20,094.2 $ 18,992.8 $ 18,127.0 Cost of sales 13,548.4 12,590.6 11,678.7 Selling, general, and administrative expenses 3,500.4 3,147.0 3,079.6 Divestitures (gain) loss, net (444.6) (194.1) 53.5 Restructuring, impairment, and other exit costs (recoveries) 56.2 (26.5) 170.4 Operating profit 3,433.8 3,475.8 3,144.8 Benefit plan non-service income (88.8) (113.4) (132.9) Interest, net 382.1 379.6 420.3 Earnings before income taxes and after-tax earnings from joint ventures 3,140.5 3,209.6 2,857.4 Income taxes 612.2 586.3 629.1 After-tax earnings from joint ventures 81.3 111.7 117.7 Net earnings, including earnings attributable to redeemable and noncontrolling interests 2,609.6 2,735.0 2,346.0 Net earnings attributable to redeemable and noncontrolling interests 15.7 27.7 6.2 Net earnings attributable to General Mills $ 2,593.9 $ 2,707.3 $ 2,339.8 Earnings per share - basic $ 4.36 $ 4.46 $ 3.81 Earnings per share - diluted $ 4.31 $ 4.42 $ 3.78 Dividends per share $ 2.16 $ 2.04 $ 2.02 See accompanying notes to consolidated financial statements. , 44 Consolidated Balance Sheets GENERAL MILLS, INC. AND SUBSIDIARIES (In Millions, Except Par Value) May 28, 2023 May 29, 2022 ASSETS Current assets: Cash and cash equivalents $ 585.5 $ 569.4 Receivables 1,683.2 1,692.1 Inventories 2,172.0 1,867.3 Prepaid expenses and other current assets 735.7 802.1 Assets held for sale - 158.9 Total current assets 5,176.4 5,089.8 Land, buildings, and equipment 3,636.2 3,393.8 Goodwill 14,511.2 14,378.5 Other intangible assets 6,967.6 6,999.9 Other assets 1,160.3 1,228.1 Total assets $ 31,451.7 $ 31,090.1 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 4,194.2 $ 3,982.3 Current portion of long-term debt 1,709.1 1,674.2 Notes payable 31.7 811.4 Other current liabilities 1,600.7 1,552.0 Total current liabilities 7,535.7 8,019.9 Long-term debt 9,965.1 9,134.8 Deferred income taxes 2,110.9 2,218.3 Other liabilities 1,140.0 929.1 Total liabilities 20,751.7 20,302.1 Stockholders' equity: Common stock, 754.6 shares issued, $ 0.10 par value 75.5 75.5 Additional paid-in capital 1,222.4 1,182.9 Retained earnings 19,838.6 18,532.6 Common stock in treasury, at cost, shares of 168 .0 and 155.7 (8,410.0) (7,278.1) Accumulated other comprehensive loss (2,276.9) (1,970.5) Total stockholders' equity 10,449.6 10,542.4 Noncontrolling interests 250.4 245.6 Total equity 10,700.0 10,788.0 Total liabilities and equity $ 31,451.7 $ 31,090.1 See accompanying notes to consolidated financial statements. , THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net sales</td><td>$</td><td>8,178.7 </td><td></td><td colspan="3"></td><td>$</td><td>8,529.2 </td><td></td><td colspan="3"></td><td>$</td><td>7,998.9 </td><td></td></tr><tr><td colspan="3">Cost of products sold (A)</td><td colspan="2">5,063.3 </td><td></td><td colspan="3"></td><td colspan="2">5,727.4 </td><td></td><td colspan="3"></td><td colspan="2">5,298.2 </td><td></td></tr><tr><td colspan="3">Gross Profit</td><td colspan="2">3,115.4 </td><td></td><td colspan="3"></td><td colspan="2">2,801.8 </td><td></td><td colspan="3"></td><td colspan="2">2,700.7 </td><td></td></tr><tr><td colspan="3">Selling, distribution, and administrative expenses</td><td colspan="2">1,446.2 </td><td></td><td colspan="3"></td><td colspan="2">1,455.0 </td><td></td><td colspan="3"></td><td colspan="2">1,360.3 </td><td></td></tr><tr><td colspan="3">Amortization</td><td colspan="2">191.1 </td><td></td><td colspan="3"></td><td colspan="2">206.9 </td><td></td><td colspan="3"></td><td colspan="2">223.6 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other intangible assets impairment charges</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">150.4 </td><td></td></tr><tr><td colspan="3">Other special project costs (A)</td><td colspan="2">130.2 </td><td></td><td colspan="3"></td><td colspan="2">4.7 </td><td></td><td colspan="3"></td><td colspan="2">8.0 </td><td></td></tr><tr><td colspan="3">Loss (gain) on divestitures – net</td><td colspan="2">12.9 </td><td></td><td colspan="3"></td><td colspan="2">1,018.5 </td><td></td><td colspan="3"></td><td colspan="2">(9.6)</td><td></td></tr><tr><td colspan="3">Other operating expense (income) – net</td><td colspan="2">29.2 </td><td></td><td colspan="3"></td><td colspan="2">(40.8)</td><td></td><td colspan="3"></td><td colspan="2">(55.8)</td><td></td></tr><tr><td colspan="3">Operating Income</td><td colspan="2">1,305.8 </td><td></td><td colspan="3"></td><td colspan="2">157.5 </td><td></td><td colspan="3"></td><td colspan="2">1,023.8 </td><td></td></tr><tr><td colspan="3">Interest expense – net</td><td colspan="2">(264.3)</td><td></td><td colspan="3"></td><td colspan="2">(152.0)</td><td></td><td colspan="3"></td><td colspan="2">(160.9)</td><td></td></tr><tr><td colspan="3">Other debt costs (A)</td><td colspan="2">(19.5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other income (expense) – net</td><td colspan="2">(25.6)</td><td></td><td colspan="3"></td><td colspan="2">(14.7)</td><td></td><td colspan="3"></td><td colspan="2">(19.1)</td><td></td></tr><tr><td colspan="3">Income (Loss) Before Income Taxes</td><td colspan="2">996.4 </td><td></td><td colspan="3"></td><td colspan="2">(9.2)</td><td></td><td colspan="3"></td><td colspan="2">843.8 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">252.4 </td><td></td><td colspan="3"></td><td colspan="2">82.1 </td><td></td><td colspan="3"></td><td colspan="2">212.1 </td><td></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net Income (Loss)</td><td>$</td><td>7.14 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.84 </td><td></td></tr><tr><td colspan="3">Net Income (Loss) – Assuming Dilution</td><td>$</td><td>7.13 </td><td></td><td colspan="3"></td><td>$</td><td>(0.86)</td><td></td><td colspan="3"></td><td>$</td><td>5.83 </td><td></td></tr></table> (A)Includes special project costs related to certain divestiture, acquisition, integration, and restructuring activities. For more information, see Note 4: Special Project Costs, Note 5: Reportable Segments, and Note 8: Debt and Financing Arrangements. See notes to consolidated financial statements. THE J. M. SMUCKER COMPANY STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">Year Ended April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Net income (loss)</td><td>$</td><td>744.0 </td><td></td><td colspan="3"></td><td>$</td><td>(91.3)</td><td></td><td colspan="3"></td><td>$</td><td>631.7 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Foreign currency translation adjustments</td><td colspan="2">(4.9)</td><td></td><td colspan="3"></td><td colspan="2">(13.2)</td><td></td><td colspan="3"></td><td colspan="2">(12.1)</td><td></td></tr><tr><td colspan="3">Cash flow hedging derivative activity, net of tax</td><td colspan="2">10.5 </td><td></td><td colspan="3"></td><td colspan="2">10.3 </td><td></td><td colspan="3"></td><td colspan="2">10.9 </td><td></td></tr><tr><td colspan="3">Pension and other postretirement benefit plans activity, net of tax</td><td colspan="2">(0.7)</td><td></td><td colspan="3"></td><td colspan="2">1.5 </td><td></td><td colspan="3"></td><td colspan="2">43.1 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities activity, net of tax</td><td colspan="2">(0.3)</td><td></td><td colspan="3"></td><td colspan="2">(0.4)</td><td></td><td colspan="3"></td><td colspan="2">(1.9)</td><td></td></tr><tr><td colspan="3">Total Other Comprehensive Income (Loss)</td><td colspan="2">4.6 </td><td></td><td colspan="3"></td><td colspan="2">(1.8)</td><td></td><td colspan="3"></td><td colspan="2">40.0 </td><td></td></tr><tr><td colspan="3">Comprehensive Income (Loss)</td><td>$</td><td>748.6 </td><td></td><td colspan="3"></td><td>$</td><td>(93.1)</td><td></td><td colspan="3"></td><td>$</td><td>671.7 </td><td></td></tr></table>See notes to consolidated financial statements. 52 , THE J. M. SMUCKER COMPANY CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9"> April 30,</td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="12">ASSETS</td></tr><tr><td colspan="3">Current Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>62.0 </td><td></td><td colspan="3"></td><td>$</td><td>655.8 </td><td></td></tr><tr><td colspan="3">Trade receivables – net</td><td colspan="2">736.5 </td><td></td><td colspan="3"></td><td colspan="2">597.6 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Finished products</td><td colspan="2">639.4 </td><td></td><td colspan="3"></td><td colspan="2">657.6 </td><td></td></tr><tr><td colspan="3">Raw materials</td><td colspan="2">399.5 </td><td></td><td colspan="3"></td><td colspan="2">352.2 </td><td></td></tr><tr><td colspan="3">Total Inventory</td><td colspan="2">1,038.9 </td><td></td><td colspan="3"></td><td colspan="2">1,009.8 </td><td></td></tr><tr><td colspan="3">Investment in equity securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">487.8 </td><td></td></tr><tr><td colspan="3">Other current assets</td><td colspan="2">129.5 </td><td></td><td colspan="3"></td><td colspan="2">107.7 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="2">1,966.9 </td><td></td><td colspan="3"></td><td colspan="2">2,858.7 </td><td></td></tr><tr><td colspan="3">Property, Plant, and Equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Land and land improvements</td><td colspan="2">152.4 </td><td></td><td colspan="3"></td><td colspan="2">131.0 </td><td></td></tr><tr><td colspan="3">Buildings and fixtures</td><td colspan="2">1,174.9 </td><td></td><td colspan="3"></td><td colspan="2">956.1 </td><td></td></tr><tr><td colspan="3">Machinery and equipment</td><td colspan="2">2,933.7 </td><td></td><td colspan="3"></td><td colspan="2">2,443.5 </td><td></td></tr><tr><td colspan="3">Construction in progress</td><td colspan="2">911.7 </td><td></td><td colspan="3"></td><td colspan="2">629.4 </td><td></td></tr><tr><td colspan="3">Gross Property, Plant, and Equipment</td><td colspan="2">5,172.7 </td><td></td><td colspan="3"></td><td colspan="2">4,160.0 </td><td></td></tr><tr><td colspan="3">Accumulated depreciation</td><td colspan="2">(2,100.0)</td><td></td><td colspan="3"></td><td colspan="2">(1,920.5)</td><td></td></tr><tr><td colspan="3">Total Property, Plant, and Equipment</td><td colspan="2">3,072.7 </td><td></td><td colspan="3"></td><td colspan="2">2,239.5 </td><td></td></tr><tr><td colspan="3">Other Noncurrent Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Operating lease right-of-use assets</td><td colspan="2">174.6 </td><td></td><td colspan="3"></td><td colspan="2">103.0 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">7,649.9 </td><td></td><td colspan="3"></td><td colspan="2">5,216.9 </td><td></td></tr><tr><td colspan="3">Other intangible assets – net</td><td colspan="2">7,255.4 </td><td></td><td colspan="3"></td><td colspan="2">4,429.3 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other noncurrent assets</td><td colspan="2">154.2 </td><td></td><td colspan="3"></td><td colspan="2">144.0 </td><td></td></tr><tr><td colspan="3">Total Other Noncurrent Assets</td><td colspan="2">15,234.1 </td><td></td><td colspan="3"></td><td colspan="2">9,893.2 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td>$</td><td>20,273.7 </td><td></td><td colspan="3"></td><td>$</td><td>14,991.4 </td><td></td></tr><tr><td colspan="12">LIABILITIES AND SHAREHOLDERS' EQUITY</td></tr><tr><td colspan="3">Current Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable</td><td>$</td><td>1,336.2 </td><td></td><td colspan="3"></td><td>$</td><td>1,392.6 </td><td></td></tr><tr><td colspan="3">Accrued compensation</td><td colspan="2">151.5 </td><td></td><td colspan="3"></td><td colspan="2">112.9 </td><td></td></tr><tr><td colspan="3">Accrued trade marketing and merchandising</td><td colspan="2">214.3 </td><td></td><td colspan="3"></td><td colspan="2">187.7 </td><td></td></tr><tr><td colspan="3">Dividends payable</td><td colspan="2">112.8 </td><td></td><td colspan="3"></td><td colspan="2">106.3 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current portion of long-term debt</td><td colspan="2">999.3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">591.0 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Current operating lease liabilities</td><td colspan="2">40.5 </td><td></td><td colspan="3"></td><td colspan="2">33.2 </td><td></td></tr><tr><td colspan="3">Other current liabilities</td><td colspan="2">315.5 </td><td></td><td colspan="3"></td><td colspan="2">154.0 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="2">3,761.1 </td><td></td><td colspan="3"></td><td colspan="2">1,986.7 </td><td></td></tr><tr><td colspan="3">Noncurrent Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt, less current portion</td><td colspan="2">6,773.7 </td><td></td><td colspan="3"></td><td colspan="2">4,314.2 </td><td></td></tr><tr><td colspan="3">Defined benefit pensions</td><td colspan="2">54.1 </td><td></td><td colspan="3"></td><td colspan="2">62.1 </td><td></td></tr><tr><td colspan="3">Other postretirement benefits</td><td colspan="2">44.3 </td><td></td><td colspan="3"></td><td colspan="2">49.1 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">1,737.4 </td><td></td><td colspan="3"></td><td colspan="2">1,138.9 </td><td></td></tr><tr><td colspan="3">Noncurrent operating lease liabilities</td><td colspan="2">143.5 </td><td></td><td colspan="3"></td><td colspan="2">77.2 </td><td></td></tr><tr><td colspan="3">Other noncurrent liabilities</td><td colspan="2">65.7 </td><td></td><td colspan="3"></td><td colspan="2">72.4 </td><td></td></tr><tr><td colspan="3">Total Noncurrent Liabilities</td><td colspan="2">8,818.7 </td><td></td><td colspan="3"></td><td colspan="2">5,713.9 </td><td></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="2">12,579.8 </td><td></td><td colspan="3"></td><td colspan="2">7,700.6 </td><td></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 106,194,281 at April 30, 2024, and 104,398,618 at April 30, 2023 (net of 44,293,364 and 42,099,112 treasury shares, respectively), at stated value</td><td colspan="2">26.5 </td><td></td><td colspan="3"></td><td colspan="2">26.1 </td><td></td></tr><tr><td colspan="3">Additional capital</td><td colspan="2">5,713.9 </td><td></td><td colspan="3"></td><td colspan="2">5,371.8 </td><td></td></tr><tr><td colspan="3">Retained income</td><td colspan="2">2,188.1 </td><td></td><td colspan="3"></td><td colspan="2">2,132.1 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="2">(234.6)</td><td></td><td colspan="3"></td><td colspan="2">(239.2)</td><td></td></tr><tr><td colspan="3">Total Shareholders' Equity</td><td colspan="2">7,693.9 </td><td></td><td colspan="3"></td><td colspan="2">7,290.8 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Shareholders' Equity</td><td>$</td><td>20,273.7 </td><td></td><td colspan="3"></td><td>$</td><td>14,991.4 </td><td></td></tr></table>See notes to consolidated financial statements. 53
q_com077
How does the noninterest income of Bank of America and JPMorgan Chase contribute to their overall performance for the three months ended June 30, 2024?
Bank of America: - Noninterest income: $11,675 million - Total revenue, net of interest expense: $25,377 million - Contribution: Noninterest income contributes approximately 46% to the total revenue JPMorgan Chase: - Noninterest revenue: $27,454 million - Total net revenue: $50,200 million - Contribution: Noninterest revenue contributes approximately 55% to the total net revenue
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com078
What are the earnings per share (EPS) for Bank of America and JPMorgan Chase for the three months ended June 30, 2024, and 2023?
For Bank of America: - Basic earnings per share for three months ended June 30, 2024: $0.83 - Basic earnings per share for three months ended June 30, 2023: $0.88 For JPMorgan Chase: - Basic earnings per share for three months ended June 30, 2024: $6.13 - Basic earnings per share for three months ended June 30, 2023: $4.76
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com079
What is the quarter-over-quarter change in net interest income for Bank of America and JPMorgan Chase for the three months ended June 30, 2024, compared to the same period in 2023?
For Bank of America, the net interest income for the three months ended June 30, 2024, was $13,702 million, compared to $14,158 million for the same period in 2023, showing a decrease of approximately 3.2%. For JPMorgan Chase, the net interest income for the three months ended June 30, 2024, was $22,746 million, compared to $21,779 million for the same period in 2023, showing an increase of approximately 4.4%.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com080
How did the noninterest income for Bank of America and JPMorgan Chase change for the six months ended June 30, 2024, compared to the same period in 2023?
For Bank of America, the noninterest income for the six months ended June 30, 2024, was $23,461 million, compared to $22,849 million for the same period in 2023, showing an increase of approximately 2.7%. For JPMorgan Chase, the noninterest income for the six months ended June 30, 2024, was $46,306 million, compared to $37,166 million for the same period in 2023, showing an increase of approximately 24.6%.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com081
What is the change in total revenue, net of interest expense, for Bank of America and JPMorgan Chase for the three months ended June 30, 2024, compared to the same period in 2023?
For Bank of America, the total revenue, net of interest expense, for the three months ended June 30, 2024, was $25,377 million, compared to $25,197 million for the same period in 2023, showing an increase of approximately 0.7%. or $180 million. For JPMorgan Chase, the total revenue, net of interest expense, for the three months ended June 30, 2024, was $50,200 million, compared to $41,307 million for the same period in 2023, showing an increase of approximately 21.5%.or $8,893 million.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com082
Compare the provision for credit losses for Bank of America and JPMorgan Chase for the six months ended June 30, 2024, and 2023.
For Bank of America, the provision for credit losses for the six months ended June 30, 2024, was $2,827 million, compared to $2,056 million for the same period in 2023, showing an increase of approximately 37.5%. For JPMorgan Chase, the provision for credit losses for the six months ended June 30, 2024, was $4,936 million, compared to $5,174 million for the same period in 2023, showing a decrease of approximately 4.6%.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com083
What is the change in net income for Bank of America and JPMorgan Chase for the three months ended June 30, 2024, compared to the same period in 2023?
For Bank of America, the net income for the three months ended June 30, 2024, was $6,897 million, compared to $7,408 million for the same period in 2023, showing a decrease of approximately 6.9%. For JPMorgan Chase, the net income for the three months ended June 30, 2024, was $18,149 million, compared to $14,472 million for the same period in 2023, showing an increase of approximately 25.4%.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com084
How did the total assets of Bank of America and JPMorgan Chase change from December 31, 2023, to June 30, 2024?
For Bank of America, the total assets as of June 30, 2024, were $3,257,996 million, compared to $3,180,151 million as of December 31, 2023, showing an increase of approximately 2.4%. For JPMorgan Chase, the total assets as of June 30, 2024, were $4,143,003 million, compared to $3,875,393 million as of December 31, 2023, showing an increase of approximately 6.9%.
Comparison
50;93
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 50: Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:----------------|:----------|:-------|:----------|:-------| | 2 | Consolidated Balance Sheet | | | | | | | | | 4 | | June 302024 | | December 312023 | | | | | | 5 | (Dollars in millions) | | | | | | | | | 6 | Assets | | | | | | | | | 7 | Cash and due from banks | $ | 25,849 | | | $ | 27,892 | | | 8 | Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 294,783 | | | 305,181 | | | | | 9 | Cash and cash equivalents | 320,632 | | | 333,073 | | | | | 10 | Time deposits placed and other short-term investments | 8,369 | | | 8,346 | | | | | 11 | Federal funds sold and securities borrowed or purchased under agreements to resell (includes $167,835 and $133,053 measured at fair value) | 337,752 | | | 280,624 | | | | | 12 | Trading account assets (includes $151,737 and $130,815 pledged as collateral) | 306,466 | | | 277,354 | | | | | 13 | Derivative assets | 35,956 | | | 39,323 | | | | | 14 | Debt securities: | | | | | | | | | 15 | Carried at fair value | 301,051 | | | 276,852 | | | | | 16 | Held-to-maturity, at cost (fair value $466,636 and $496,597) | 577,366 | | | 594,555 | | | | | 17 | Total debt securities | 878,417 | | | 871,407 | | | | | 18 | Loans and leases (includes $3,197 and $3,569 measured at fair value) | 1,056,785 | | | 1,053,732 | | | | | 19 | Allowance for loan and lease losses | (13,238) | | | (13,342) | | | | | 20 | Loans and leases, net of allowance | 1,043,547 | | | 1,040,390 | | | | | 21 | Premises and equipment, net | 11,917 | | | 11,855 | | | | | 22 | Goodwill | 69,021 | | | 69,021 | | | | | 23 | Loans held-for-sale (includes $1,572 and $2,059 measured at fair value) | 7,043 | | | 6,002 | | | | | 24 | Customer and other receivables | 80,978 | | | 81,881 | | | | | 25 | Other assets (includes $15,314 and $11,861 measured at fair value) | 157,898 | | | 160,875 | | | | | 26 | Total assets | $ | 3,257,996 | | | $ | 3,180,151 | | | 28 | Liabilities | | | | | | | | | 29 | Deposits in U.S. offices: | | | | | | | | | 30 | Noninterest-bearing | $ | 503,037 | | | $ | 530,619 | | | 31 | Interest-bearing (includes $370 and $284 measured at fair value) | 1,291,853 | | | 1,273,904 | | | | | 32 | Deposits in non-U.S. offices: | | | | | | | | | 33 | Noninterest-bearing | 14,573 | | | 16,427 | | | | | 34 | Interest-bearing | 101,028 | | | 102,877 | | | | | 35 | Total deposits | 1,910,491 | | | 1,923,827 | | | | | 36 | Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $214,719 and $178,609 measured at fair value) | 368,106 | | | 283,887 | | | | | 37 | Trading account liabilities | 100,345 | | | 95,530 | | | | | 38 | Derivative liabilities | 40,508 | | | 43,432 | | | | | 39 | Short-term borrowings (includes $7,200 and $4,690 measured at fair value) | 40,429 | | | 32,098 | | | | | 40 | Accrued expenses and other liabilities (includes $15,064 and $11,473 measured at fair value and $1,104 and $1,209 of reserve for unfunded lending commitments) | 213,751 | | | 207,527 | | | | | 41 | Long-term debt (includes $46,875 and $42,809 measured at fair value) | 290,474 | | | 302,204 | | | | | 42 | Total liabilities | 2,964,104 | | | 2,888,505 | | | | | 43 | Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | | | | | | | | | 44 | Shareholders' equity | | | | | | | | | 45 | Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,013,928 and 4,088,099 Shares | 26,548 | | | 28,397 | | | | | 46 | Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,774,753,442 and 7,895,457,665 shares | 51,376 | | | 56,365 | | | | | 47 | Retained earnings | 233,597 | | | 224,672 | | | | | 48 | Accumulated other comprehensive income (loss) | (17,629) | | | (17,788) | | | | | 50 | Total shareholders' equity | 293,892 | | | 291,646 | | | | | 51 | Total liabilities and shareholders' equity | $ | 3,257,996 | | | $ | 3,180,151 | | | 53 | | Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | | | | | | | | 54 | | Trading account assets | $ | 5,647 | | | $ | 6,054 | | 57 | | Loans and leases | 19,827 | | | 18,276 | | | | 58 | | Allowance for loan and lease losses | (917) | | | (826) | | | | 59 | | Loans and leases, net of allowance | 18,910 | | | 17,450 | | | | 61 | | All other assets | 281 | | | 269 | | | | 62 | | Total assets of consolidated variable interest entities | $ | 24,838 | | | $ | 23,773 | | 63 | | Liabilities of consolidated variable interest entities included in total liabilities above | | | | | | | | 64 | | Short-term borrowings (includes $0 and $23 of non-recourse short-term borrowings) | $ | 3,343 | | | $ | 2,957 | | 65 | | Long-term debt (includes $9,137 and $8,456 of non-recourse debt) | 9,137 | | | 8,456 | | | | 66 | | All other liabilities (includes $22 and $19 of non-recourse liabilities) | 22 | | | 19 | | | | 67 | | Total liabilities of consolidated variable interest entities | $ | 12,502 | | | $ | 11,432 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | Bank of America 50 | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 93: JPMorgan Chase & Co. Consolidated balance sheets (unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------|:--------------|:----------|:------------------|:----------|:---|:----------| | 1 | (in millions, except share data) | June 30, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Cash and due from banks | $ | 27,265 | | | $ | 29,066 | | 4 | Deposits with banks | 503,554 | | | 595,085 | | | | 5 | Federal funds sold and securities purchased under resale agreements (included $379,930 and $259,813 at fair value) | 392,763 | | | 276,152 | | | | 6 | Securities borrowed (included $87,652 and $70,086 at fair value) | 199,062 | | | 200,436 | | | | 7 | Trading assets (included assets pledged of $176,536 and $128,994) | 733,882 | | | 540,607 | | | | 8 | Available-for-sale securities (amortized cost of $269,899 and $205,456; included assets pledged of $9,146 and $9,219) | 266,252 | | | 201,704 | | | | 9 | Held-to-maturity securities | 323,746 | | | 369,848 | | | | 10 | Investment securities, net of allowance for credit losses | 589,998 | | | 571,552 | | | | 11 | Loans (included $38,250 and $38,851 at fair value) | 1,320,700 | | | 1,323,706 | | | | 12 | Allowance for loan losses | (22,991) | | | (22,420) | | | | 13 | Loans, net of allowance for loan losses | 1,297,709 | | | 1,301,286 | | | | 14 | Accrued interest and accounts receivable | 135,692 | | | 107,363 | | | | 15 | Premises and equipment | 30,582 | | | 30,157 | | | | 16 | Goodwill, MSRs and other intangible assets | 64,525 | | | 64,381 | | | | 17 | Other assets (included $17,233 and $12,306 at fair value and assets pledged of $6,702 and $6,764) | 167,971 | | | 159,308 | | | | 18 | Total assets(a) | $ | 4,143,003 | | | $ | 3,875,393 | | 19 | Liabilities | | | | | | | | 20 | Deposits (included $69,387 and $78,384 at fair value) | $ | 2,396,530 | | | $ | 2,400,688 | | 21 | Federal funds purchased and securities loaned or sold under repurchase agreements (included $336,315 and $169,003 at fair value) | 400,832 | | | 216,535 | | | | 22 | Short-term borrowings (included $26,117 and $20,042 at fair value) | 47,308 | | | 44,712 | | | | 23 | Trading liabilities | 240,836 | | | 180,428 | | | | 24 | Accounts payable and other liabilities (included $5,925 and $5,637 at fair value) | 295,813 | | | 290,307 | | | | 25 | Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value) | 27,104 | | | 23,020 | | | | 26 | Long-term debt (included $93,448 and $87,924 at fair value) | 394,028 | | | 391,825 | | | | 27 | Total liabilities(a) | 3,802,451 | | | 3,547,515 | | | | 28 | Commitments and contingencies (refer to Notes 22, 23 and 24) | | | | | | | | 29 | Stockholders' equity | | | | | | | | 30 | Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,390,375 and 2,740,375 shares) | 23,900 | | | 27,404 | | | | 31 | Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) | 4,105 | | | 4,105 | | | | 32 | Additional paid-in capital | 90,328 | | | 90,128 | | | | 33 | Retained earnings | 356,924 | | | 332,901 | | | | 34 | Accumulated other comprehensive losses | (11,338) | | | (10,443) | | | | 35 | Treasury stock, at cost (1,259,769,168 and 1,228,275,301 shares) | (123,367) | | | (116,217) | | | | 36 | Total stockholders' equity | 340,552 | | | 327,878 | | | | 37 | Total liabilities and stockholders' equity | $ | 4,143,003 | | | $ | 3,875,393 | (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. | | | | | | | | | |---:|:-------------------------------------------------|:--------------|:-------|:------------------|:-------|:---|:-------| | 1 | (in millions) | June 30, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Trading assets | $ | 2,366 | | | $ | 2,170 | | 4 | Loans | 37,367 | | | 37,611 | | | | 5 | All other assets | 641 | | | 591 | | | | 6 | Total assets | $ | 40,374 | | | $ | 40,372 | | 7 | Liabilities | | | | | | | | 8 | Beneficial interests issued by consolidated VIEs | $ | 27,104 | | | $ | 23,020 | | 9 | All other liabilities | 335 | | | 263 | | | | 10 | Total liabilities | $ | 27,439 | | | $ | 23,283 | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 93
Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:----------------|:----------|:-------|:----------|:-------| | 2 | Consolidated Balance Sheet | | | | | | | | | 4 | | June 302024 | | December 312023 | | | | | | 5 | (Dollars in millions) | | | | | | | | | 6 | Assets | | | | | | | | | 7 | Cash and due from banks | $ | 25,849 | | | $ | 27,892 | | | 8 | Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 294,783 | | | 305,181 | | | | | 9 | Cash and cash equivalents | 320,632 | | | 333,073 | | | | | 10 | Time deposits placed and other short-term investments | 8,369 | | | 8,346 | | | | | 11 | Federal funds sold and securities borrowed or purchased under agreements to resell (includes $167,835 and $133,053 measured at fair value) | 337,752 | | | 280,624 | | | | | 12 | Trading account assets (includes $151,737 and $130,815 pledged as collateral) | 306,466 | | | 277,354 | | | | | 13 | Derivative assets | 35,956 | | | 39,323 | | | | | 14 | Debt securities: | | | | | | | | | 15 | Carried at fair value | 301,051 | | | 276,852 | | | | | 16 | Held-to-maturity, at cost (fair value $466,636 and $496,597) | 577,366 | | | 594,555 | | | | | 17 | Total debt securities | 878,417 | | | 871,407 | | | | | 18 | Loans and leases (includes $3,197 and $3,569 measured at fair value) | 1,056,785 | | | 1,053,732 | | | | | 19 | Allowance for loan and lease losses | (13,238) | | | (13,342) | | | | | 20 | Loans and leases, net of allowance | 1,043,547 | | | 1,040,390 | | | | | 21 | Premises and equipment, net | 11,917 | | | 11,855 | | | | | 22 | Goodwill | 69,021 | | | 69,021 | | | | | 23 | Loans held-for-sale (includes $1,572 and $2,059 measured at fair value) | 7,043 | | | 6,002 | | | | | 24 | Customer and other receivables | 80,978 | | | 81,881 | | | | | 25 | Other assets (includes $15,314 and $11,861 measured at fair value) | 157,898 | | | 160,875 | | | | | 26 | Total assets | $ | 3,257,996 | | | $ | 3,180,151 | | | 28 | Liabilities | | | | | | | | | 29 | Deposits in U.S. offices: | | | | | | | | | 30 | Noninterest-bearing | $ | 503,037 | | | $ | 530,619 | | | 31 | Interest-bearing (includes $370 and $284 measured at fair value) | 1,291,853 | | | 1,273,904 | | | | | 32 | Deposits in non-U.S. offices: | | | | | | | | | 33 | Noninterest-bearing | 14,573 | | | 16,427 | | | | | 34 | Interest-bearing | 101,028 | | | 102,877 | | | | | 35 | Total deposits | 1,910,491 | | | 1,923,827 | | | | | 36 | Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $214,719 and $178,609 measured at fair value) | 368,106 | | | 283,887 | | | | | 37 | Trading account liabilities | 100,345 | | | 95,530 | | | | | 38 | Derivative liabilities | 40,508 | | | 43,432 | | | | | 39 | Short-term borrowings (includes $7,200 and $4,690 measured at fair value) | 40,429 | | | 32,098 | | | | | 40 | Accrued expenses and other liabilities (includes $15,064 and $11,473 measured at fair value and $1,104 and $1,209 of reserve for unfunded lending commitments) | 213,751 | | | 207,527 | | | | | 41 | Long-term debt (includes $46,875 and $42,809 measured at fair value) | 290,474 | | | 302,204 | | | | | 42 | Total liabilities | 2,964,104 | | | 2,888,505 | | | | | 43 | Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | | | | | | | | | 44 | Shareholders' equity | | | | | | | | | 45 | Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,013,928 and 4,088,099 Shares | 26,548 | | | 28,397 | | | | | 46 | Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,774,753,442 and 7,895,457,665 shares | 51,376 | | | 56,365 | | | | | 47 | Retained earnings | 233,597 | | | 224,672 | | | | | 48 | Accumulated other comprehensive income (loss) | (17,629) | | | (17,788) | | | | | 50 | Total shareholders' equity | 293,892 | | | 291,646 | | | | | 51 | Total liabilities and shareholders' equity | $ | 3,257,996 | | | $ | 3,180,151 | | | 53 | | Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | | | | | | | | 54 | | Trading account assets | $ | 5,647 | | | $ | 6,054 | | 57 | | Loans and leases | 19,827 | | | 18,276 | | | | 58 | | Allowance for loan and lease losses | (917) | | | (826) | | | | 59 | | Loans and leases, net of allowance | 18,910 | | | 17,450 | | | | 61 | | All other assets | 281 | | | 269 | | | | 62 | | Total assets of consolidated variable interest entities | $ | 24,838 | | | $ | 23,773 | | 63 | | Liabilities of consolidated variable interest entities included in total liabilities above | | | | | | | | 64 | | Short-term borrowings (includes $0 and $23 of non-recourse short-term borrowings) | $ | 3,343 | | | $ | 2,957 | | 65 | | Long-term debt (includes $9,137 and $8,456 of non-recourse debt) | 9,137 | | | 8,456 | | | | 66 | | All other liabilities (includes $22 and $19 of non-recourse liabilities) | 22 | | | 19 | | | | 67 | | Total liabilities of consolidated variable interest entities | $ | 12,502 | | | $ | 11,432 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | Bank of America 50 | , JPMorgan Chase & Co. Consolidated balance sheets (unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------|:--------------|:----------|:------------------|:----------|:---|:----------| | 1 | (in millions, except share data) | June 30, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Cash and due from banks | $ | 27,265 | | | $ | 29,066 | | 4 | Deposits with banks | 503,554 | | | 595,085 | | | | 5 | Federal funds sold and securities purchased under resale agreements (included $379,930 and $259,813 at fair value) | 392,763 | | | 276,152 | | | | 6 | Securities borrowed (included $87,652 and $70,086 at fair value) | 199,062 | | | 200,436 | | | | 7 | Trading assets (included assets pledged of $176,536 and $128,994) | 733,882 | | | 540,607 | | | | 8 | Available-for-sale securities (amortized cost of $269,899 and $205,456; included assets pledged of $9,146 and $9,219) | 266,252 | | | 201,704 | | | | 9 | Held-to-maturity securities | 323,746 | | | 369,848 | | | | 10 | Investment securities, net of allowance for credit losses | 589,998 | | | 571,552 | | | | 11 | Loans (included $38,250 and $38,851 at fair value) | 1,320,700 | | | 1,323,706 | | | | 12 | Allowance for loan losses | (22,991) | | | (22,420) | | | | 13 | Loans, net of allowance for loan losses | 1,297,709 | | | 1,301,286 | | | | 14 | Accrued interest and accounts receivable | 135,692 | | | 107,363 | | | | 15 | Premises and equipment | 30,582 | | | 30,157 | | | | 16 | Goodwill, MSRs and other intangible assets | 64,525 | | | 64,381 | | | | 17 | Other assets (included $17,233 and $12,306 at fair value and assets pledged of $6,702 and $6,764) | 167,971 | | | 159,308 | | | | 18 | Total assets(a) | $ | 4,143,003 | | | $ | 3,875,393 | | 19 | Liabilities | | | | | | | | 20 | Deposits (included $69,387 and $78,384 at fair value) | $ | 2,396,530 | | | $ | 2,400,688 | | 21 | Federal funds purchased and securities loaned or sold under repurchase agreements (included $336,315 and $169,003 at fair value) | 400,832 | | | 216,535 | | | | 22 | Short-term borrowings (included $26,117 and $20,042 at fair value) | 47,308 | | | 44,712 | | | | 23 | Trading liabilities | 240,836 | | | 180,428 | | | | 24 | Accounts payable and other liabilities (included $5,925 and $5,637 at fair value) | 295,813 | | | 290,307 | | | | 25 | Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value) | 27,104 | | | 23,020 | | | | 26 | Long-term debt (included $93,448 and $87,924 at fair value) | 394,028 | | | 391,825 | | | | 27 | Total liabilities(a) | 3,802,451 | | | 3,547,515 | | | | 28 | Commitments and contingencies (refer to Notes 22, 23 and 24) | | | | | | | | 29 | Stockholders' equity | | | | | | | | 30 | Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,390,375 and 2,740,375 shares) | 23,900 | | | 27,404 | | | | 31 | Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) | 4,105 | | | 4,105 | | | | 32 | Additional paid-in capital | 90,328 | | | 90,128 | | | | 33 | Retained earnings | 356,924 | | | 332,901 | | | | 34 | Accumulated other comprehensive losses | (11,338) | | | (10,443) | | | | 35 | Treasury stock, at cost (1,259,769,168 and 1,228,275,301 shares) | (123,367) | | | (116,217) | | | | 36 | Total stockholders' equity | 340,552 | | | 327,878 | | | | 37 | Total liabilities and stockholders' equity | $ | 4,143,003 | | | $ | 3,875,393 | (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. | | | | | | | | | |---:|:-------------------------------------------------|:--------------|:-------|:------------------|:-------|:---|:-------| | 1 | (in millions) | June 30, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Trading assets | $ | 2,366 | | | $ | 2,170 | | 4 | Loans | 37,367 | | | 37,611 | | | | 5 | All other assets | 641 | | | 591 | | | | 6 | Total assets | $ | 40,374 | | | $ | 40,372 | | 7 | Liabilities | | | | | | | | 8 | Beneficial interests issued by consolidated VIEs | $ | 27,104 | | | $ | 23,020 | | 9 | All other liabilities | 335 | | | 263 | | | | 10 | Total liabilities | $ | 27,439 | | | $ | 23,283 | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 93
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 50: Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">Consolidated Balance Sheet</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6"></td><td colspan="3" rowspan="2">June 302024</td><td colspan="3"></td><td colspan="3" rowspan="2">December 312023</td></tr><tr><td colspan="6">(Dollars in millions)</td><td colspan="3"></td></tr><tr><td colspan="6">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Cash and due from banks</td><td>$</td><td>25,849 </td><td></td><td colspan="3"></td><td>$</td><td>27,892 </td><td></td></tr><tr><td colspan="6">Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks</td><td colspan="2">294,783 </td><td></td><td colspan="3"></td><td colspan="2">305,181 </td><td></td></tr><tr><td colspan="6">Cash and cash equivalents</td><td colspan="2">320,632 </td><td></td><td colspan="3"></td><td colspan="2">333,073 </td><td></td></tr><tr><td colspan="6">Time deposits placed and other short-term investments</td><td colspan="2">8,369 </td><td></td><td colspan="3"></td><td colspan="2">8,346 </td><td></td></tr><tr><td colspan="6">Federal funds sold and securities borrowed or purchased under agreements to resell (includes $167,835 and $133,053 measured at fair value)</td><td colspan="2">337,752 </td><td></td><td colspan="3"></td><td colspan="2">280,624 </td><td></td></tr><tr><td colspan="6">Trading account assets (includes $151,737 and $130,815 pledged as collateral)</td><td colspan="2">306,466 </td><td></td><td colspan="3"></td><td colspan="2">277,354 </td><td></td></tr><tr><td colspan="6">Derivative assets</td><td colspan="2">35,956 </td><td></td><td colspan="3"></td><td colspan="2">39,323 </td><td></td></tr><tr><td colspan="6">Debt securities:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Carried at fair value</td><td colspan="2">301,051 </td><td></td><td colspan="3"></td><td colspan="2">276,852 </td><td></td></tr><tr><td colspan="6">Held-to-maturity, at cost (fair value $466,636 and $496,597)</td><td colspan="2">577,366 </td><td></td><td colspan="3"></td><td colspan="2">594,555 </td><td></td></tr><tr><td colspan="6">Total debt securities</td><td colspan="2">878,417 </td><td></td><td colspan="3"></td><td colspan="2">871,407 </td><td></td></tr><tr><td colspan="6">Loans and leases (includes $3,197 and $3,569 measured at fair value)</td><td colspan="2">1,056,785 </td><td></td><td colspan="3"></td><td colspan="2">1,053,732 </td><td></td></tr><tr><td colspan="6">Allowance for loan and lease losses</td><td colspan="2">(13,238)</td><td></td><td colspan="3"></td><td colspan="2">(13,342)</td><td></td></tr><tr><td colspan="6">Loans and leases, net of allowance</td><td colspan="2">1,043,547 </td><td></td><td colspan="3"></td><td colspan="2">1,040,390 </td><td></td></tr><tr><td colspan="6">Premises and equipment, net</td><td colspan="2">11,917 </td><td></td><td colspan="3"></td><td colspan="2">11,855 </td><td></td></tr><tr><td colspan="6">Goodwill</td><td colspan="2">69,021 </td><td></td><td colspan="3"></td><td colspan="2">69,021 </td><td></td></tr><tr><td colspan="6">Loans held-for-sale (includes $1,572 and $2,059 measured at fair value)</td><td colspan="2">7,043 </td><td></td><td colspan="3"></td><td colspan="2">6,002 </td><td></td></tr><tr><td colspan="6">Customer and other receivables</td><td colspan="2">80,978 </td><td></td><td colspan="3"></td><td colspan="2">81,881 </td><td></td></tr><tr><td colspan="6">Other assets (includes $15,314 and $11,861 measured at fair value)</td><td colspan="2">157,898 </td><td></td><td colspan="3"></td><td colspan="2">160,875 </td><td></td></tr><tr><td colspan="6">Total assets</td><td>$</td><td>3,257,996 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Liabilities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Deposits in U.S. offices:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Noninterest-bearing</td><td>$</td><td>503,037 </td><td></td><td colspan="3"></td><td>$</td><td>530,619 </td><td></td></tr><tr><td colspan="6">Interest-bearing (includes $370 and $284 measured at fair value)</td><td colspan="2">1,291,853 </td><td></td><td colspan="3"></td><td colspan="2">1,273,904 </td><td></td></tr><tr><td colspan="6">Deposits in non-U.S. offices:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Noninterest-bearing</td><td colspan="2">14,573 </td><td></td><td colspan="3"></td><td colspan="2">16,427 </td><td></td></tr><tr><td colspan="6">Interest-bearing</td><td colspan="2">101,028 </td><td></td><td colspan="3"></td><td colspan="2">102,877 </td><td></td></tr><tr><td colspan="6">Total deposits</td><td colspan="2">1,910,491 </td><td></td><td colspan="3"></td><td colspan="2">1,923,827 </td><td></td></tr><tr><td colspan="6">Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $214,719 and $178,609 measured at fair value)</td><td colspan="2">368,106 </td><td></td><td colspan="3"></td><td colspan="2">283,887 </td><td></td></tr><tr><td colspan="6">Trading account liabilities</td><td colspan="2">100,345 </td><td></td><td colspan="3"></td><td colspan="2">95,530 </td><td></td></tr><tr><td colspan="6">Derivative liabilities</td><td colspan="2">40,508 </td><td></td><td colspan="3"></td><td colspan="2">43,432 </td><td></td></tr><tr><td colspan="6">Short-term borrowings (includes $7,200 and $4,690 measured at fair value)</td><td colspan="2">40,429 </td><td></td><td colspan="3"></td><td colspan="2">32,098 </td><td></td></tr><tr><td colspan="6">Accrued expenses and other liabilities (includes $15,064 and $11,473 measured at fair value and $1,104 and $1,209 of reserve for unfunded lending commitments)</td><td colspan="2">213,751 </td><td></td><td colspan="3"></td><td colspan="2">207,527 </td><td></td></tr><tr><td colspan="6">Long-term debt (includes $46,875 and $42,809 measured at fair value)</td><td colspan="2">290,474 </td><td></td><td colspan="3"></td><td colspan="2">302,204 </td><td></td></tr><tr><td colspan="6">Total liabilities</td><td colspan="2">2,964,104 </td><td></td><td colspan="3"></td><td colspan="2">2,888,505 </td><td></td></tr><tr><td colspan="6">Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Shareholders' equity</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,013,928 and 4,088,099 Shares</td><td colspan="2">26,548 </td><td></td><td colspan="3"></td><td colspan="2">28,397 </td><td></td></tr><tr><td colspan="6">Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,774,753,442 and 7,895,457,665 shares</td><td colspan="2">51,376 </td><td></td><td colspan="3"></td><td colspan="2">56,365 </td><td></td></tr><tr><td colspan="6">Retained earnings</td><td colspan="2">233,597 </td><td></td><td colspan="3"></td><td colspan="2">224,672 </td><td></td></tr><tr><td colspan="6">Accumulated other comprehensive income (loss)</td><td colspan="2">(17,629)</td><td></td><td colspan="3"></td><td colspan="2">(17,788)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Total shareholders' equity</td><td colspan="2">293,892 </td><td></td><td colspan="3"></td><td colspan="2">291,646 </td><td></td></tr><tr><td colspan="6">Total liabilities and shareholders' equity</td><td>$</td><td>3,257,996 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Trading account assets</td><td>$</td><td>5,647 </td><td></td><td colspan="3"></td><td>$</td><td>6,054 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases</td><td colspan="2">19,827 </td><td></td><td colspan="3"></td><td colspan="2">18,276 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Allowance for loan and lease losses</td><td colspan="2">(917)</td><td></td><td colspan="3"></td><td colspan="2">(826)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases, net of allowance</td><td colspan="2">18,910 </td><td></td><td colspan="3"></td><td colspan="2">17,450 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">All other assets</td><td colspan="2">281 </td><td></td><td colspan="3"></td><td colspan="2">269 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total assets of consolidated variable interest entities</td><td>$</td><td>24,838 </td><td></td><td colspan="3"></td><td>$</td><td>23,773 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Liabilities of consolidated variable interest entities included in total liabilities above</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3"></td><td colspan="3">Short-term borrowings (includes $0 and $23 of non-recourse short-term borrowings)</td><td>$</td><td>3,343 </td><td></td><td colspan="3"></td><td>$</td><td>2,957 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Long-term debt (includes $9,137 and $8,456 of non-recourse debt)</td><td colspan="2">9,137 </td><td></td><td colspan="3"></td><td colspan="2">8,456 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">All other liabilities (includes $22 and $19 of non-recourse liabilities)</td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total liabilities of consolidated variable interest entities</td><td>$</td><td>12,502 </td><td></td><td colspan="3"></td><td>$</td><td>11,432 </td><td></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">Bank of America 50</td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 93: JPMorgan Chase & Co. Consolidated balance sheets (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions, except share data)</td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks</td><td>$</td><td>27,265 </td><td></td><td colspan="3"></td><td>$</td><td>29,066 </td><td></td></tr><tr><td colspan="3">Deposits with banks</td><td colspan="2">503,554 </td><td></td><td colspan="3"></td><td colspan="2">595,085 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements (included $379,930 and $259,813 at fair value)</td><td colspan="2">392,763 </td><td></td><td colspan="3"></td><td colspan="2">276,152 </td><td></td></tr><tr><td colspan="3">Securities borrowed (included $87,652 and $70,086 at fair value)</td><td colspan="2">199,062 </td><td></td><td colspan="3"></td><td colspan="2">200,436 </td><td></td></tr><tr><td colspan="3">Trading assets (included assets pledged of $176,536 and $128,994)</td><td colspan="2">733,882 </td><td></td><td colspan="3"></td><td colspan="2">540,607 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities (amortized cost of $269,899 and $205,456; included assets pledged of $9,146 and $9,219)</td><td colspan="2">266,252 </td><td></td><td colspan="3"></td><td colspan="2">201,704 </td><td></td></tr><tr><td colspan="3">Held-to-maturity securities </td><td colspan="2">323,746 </td><td></td><td colspan="3"></td><td colspan="2">369,848 </td><td></td></tr><tr><td colspan="3">Investment securities, net of allowance for credit losses</td><td colspan="2">589,998 </td><td></td><td colspan="3"></td><td colspan="2">571,552 </td><td></td></tr><tr><td colspan="3">Loans (included $38,250 and $38,851 at fair value)</td><td colspan="2">1,320,700 </td><td></td><td colspan="3"></td><td colspan="2">1,323,706 </td><td></td></tr><tr><td colspan="3">Allowance for loan losses</td><td colspan="2">(22,991)</td><td></td><td colspan="3"></td><td colspan="2">(22,420)</td><td></td></tr><tr><td colspan="3">Loans, net of allowance for loan losses</td><td colspan="2">1,297,709 </td><td></td><td colspan="3"></td><td colspan="2">1,301,286 </td><td></td></tr><tr><td colspan="3">Accrued interest and accounts receivable</td><td colspan="2">135,692 </td><td></td><td colspan="3"></td><td colspan="2">107,363 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">30,582 </td><td></td><td colspan="3"></td><td colspan="2">30,157 </td><td></td></tr><tr><td colspan="3">Goodwill, MSRs and other intangible assets</td><td colspan="2">64,525 </td><td></td><td colspan="3"></td><td colspan="2">64,381 </td><td></td></tr><tr><td colspan="3">Other assets (included $17,233 and $12,306 at fair value and assets pledged of $6,702 and $6,764)</td><td colspan="2">167,971 </td><td></td><td colspan="3"></td><td colspan="2">159,308 </td><td></td></tr><tr><td colspan="3">Total assets(a)</td><td>$</td><td>4,143,003 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (included $69,387 and $78,384 at fair value)</td><td>$</td><td>2,396,530 </td><td></td><td colspan="3"></td><td>$</td><td>2,400,688 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities loaned or sold under repurchase agreements (included $336,315 and $169,003 at fair value)</td><td colspan="2">400,832 </td><td></td><td colspan="3"></td><td colspan="2">216,535 </td><td></td></tr><tr><td colspan="3">Short-term borrowings (included $26,117 and $20,042 at fair value)</td><td colspan="2">47,308 </td><td></td><td colspan="3"></td><td colspan="2">44,712 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">240,836 </td><td></td><td colspan="3"></td><td colspan="2">180,428 </td><td></td></tr><tr><td colspan="3">Accounts payable and other liabilities (included $5,925 and $5,637 at fair value)</td><td colspan="2">295,813 </td><td></td><td colspan="3"></td><td colspan="2">290,307 </td><td></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)</td><td colspan="2">27,104 </td><td></td><td colspan="3"></td><td colspan="2">23,020 </td><td></td></tr><tr><td colspan="3">Long-term debt (included $93,448 and $87,924 at fair value)</td><td colspan="2">394,028 </td><td></td><td colspan="3"></td><td colspan="2">391,825 </td><td></td></tr><tr><td colspan="3">Total liabilities(a)</td><td colspan="2">3,802,451 </td><td></td><td colspan="3"></td><td colspan="2">3,547,515 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (refer to Notes 22, 23 and 24)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,390,375 and 2,740,375 shares) </td><td colspan="2">23,900 </td><td></td><td colspan="3"></td><td colspan="2">27,404 </td><td></td></tr><tr><td colspan="3">Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)</td><td colspan="2">4,105 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">90,328 </td><td></td><td colspan="3"></td><td colspan="2">90,128 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">356,924 </td><td></td><td colspan="3"></td><td colspan="2">332,901 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="2">(11,338)</td><td></td><td colspan="3"></td><td colspan="2">(10,443)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (1,259,769,168 and 1,228,275,301 shares)</td><td colspan="2">(123,367)</td><td></td><td colspan="3"></td><td colspan="2">(116,217)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">340,552 </td><td></td><td colspan="3"></td><td colspan="2">327,878 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>4,143,003 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr></table>(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions)</td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Trading assets</td><td>$</td><td>2,366 </td><td></td><td colspan="3"></td><td>$</td><td>2,170 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">37,367 </td><td></td><td colspan="3"></td><td colspan="2">37,611 </td><td></td></tr><tr><td colspan="3">All other assets</td><td colspan="2">641 </td><td></td><td colspan="3"></td><td colspan="2">591 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>40,374 </td><td></td><td colspan="3"></td><td>$</td><td>40,372 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs</td><td>$</td><td>27,104 </td><td></td><td colspan="3"></td><td>$</td><td>23,020 </td><td></td></tr><tr><td colspan="3">All other liabilities</td><td colspan="2">335 </td><td></td><td colspan="3"></td><td colspan="2">263 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>27,439 </td><td></td><td colspan="3"></td><td>$</td><td>23,283 </td><td></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 93
Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">Consolidated Balance Sheet</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6"></td><td colspan="3" rowspan="2">June 302024</td><td colspan="3"></td><td colspan="3" rowspan="2">December 312023</td></tr><tr><td colspan="6">(Dollars in millions)</td><td colspan="3"></td></tr><tr><td colspan="6">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Cash and due from banks</td><td>$</td><td>25,849 </td><td></td><td colspan="3"></td><td>$</td><td>27,892 </td><td></td></tr><tr><td colspan="6">Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks</td><td colspan="2">294,783 </td><td></td><td colspan="3"></td><td colspan="2">305,181 </td><td></td></tr><tr><td colspan="6">Cash and cash equivalents</td><td colspan="2">320,632 </td><td></td><td colspan="3"></td><td colspan="2">333,073 </td><td></td></tr><tr><td colspan="6">Time deposits placed and other short-term investments</td><td colspan="2">8,369 </td><td></td><td colspan="3"></td><td colspan="2">8,346 </td><td></td></tr><tr><td colspan="6">Federal funds sold and securities borrowed or purchased under agreements to resell (includes $167,835 and $133,053 measured at fair value)</td><td colspan="2">337,752 </td><td></td><td colspan="3"></td><td colspan="2">280,624 </td><td></td></tr><tr><td colspan="6">Trading account assets (includes $151,737 and $130,815 pledged as collateral)</td><td colspan="2">306,466 </td><td></td><td colspan="3"></td><td colspan="2">277,354 </td><td></td></tr><tr><td colspan="6">Derivative assets</td><td colspan="2">35,956 </td><td></td><td colspan="3"></td><td colspan="2">39,323 </td><td></td></tr><tr><td colspan="6">Debt securities:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Carried at fair value</td><td colspan="2">301,051 </td><td></td><td colspan="3"></td><td colspan="2">276,852 </td><td></td></tr><tr><td colspan="6">Held-to-maturity, at cost (fair value $466,636 and $496,597)</td><td colspan="2">577,366 </td><td></td><td colspan="3"></td><td colspan="2">594,555 </td><td></td></tr><tr><td colspan="6">Total debt securities</td><td colspan="2">878,417 </td><td></td><td colspan="3"></td><td colspan="2">871,407 </td><td></td></tr><tr><td colspan="6">Loans and leases (includes $3,197 and $3,569 measured at fair value)</td><td colspan="2">1,056,785 </td><td></td><td colspan="3"></td><td colspan="2">1,053,732 </td><td></td></tr><tr><td colspan="6">Allowance for loan and lease losses</td><td colspan="2">(13,238)</td><td></td><td colspan="3"></td><td colspan="2">(13,342)</td><td></td></tr><tr><td colspan="6">Loans and leases, net of allowance</td><td colspan="2">1,043,547 </td><td></td><td colspan="3"></td><td colspan="2">1,040,390 </td><td></td></tr><tr><td colspan="6">Premises and equipment, net</td><td colspan="2">11,917 </td><td></td><td colspan="3"></td><td colspan="2">11,855 </td><td></td></tr><tr><td colspan="6">Goodwill</td><td colspan="2">69,021 </td><td></td><td colspan="3"></td><td colspan="2">69,021 </td><td></td></tr><tr><td colspan="6">Loans held-for-sale (includes $1,572 and $2,059 measured at fair value)</td><td colspan="2">7,043 </td><td></td><td colspan="3"></td><td colspan="2">6,002 </td><td></td></tr><tr><td colspan="6">Customer and other receivables</td><td colspan="2">80,978 </td><td></td><td colspan="3"></td><td colspan="2">81,881 </td><td></td></tr><tr><td colspan="6">Other assets (includes $15,314 and $11,861 measured at fair value)</td><td colspan="2">157,898 </td><td></td><td colspan="3"></td><td colspan="2">160,875 </td><td></td></tr><tr><td colspan="6">Total assets</td><td>$</td><td>3,257,996 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Liabilities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Deposits in U.S. offices:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Noninterest-bearing</td><td>$</td><td>503,037 </td><td></td><td colspan="3"></td><td>$</td><td>530,619 </td><td></td></tr><tr><td colspan="6">Interest-bearing (includes $370 and $284 measured at fair value)</td><td colspan="2">1,291,853 </td><td></td><td colspan="3"></td><td colspan="2">1,273,904 </td><td></td></tr><tr><td colspan="6">Deposits in non-U.S. offices:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Noninterest-bearing</td><td colspan="2">14,573 </td><td></td><td colspan="3"></td><td colspan="2">16,427 </td><td></td></tr><tr><td colspan="6">Interest-bearing</td><td colspan="2">101,028 </td><td></td><td colspan="3"></td><td colspan="2">102,877 </td><td></td></tr><tr><td colspan="6">Total deposits</td><td colspan="2">1,910,491 </td><td></td><td colspan="3"></td><td colspan="2">1,923,827 </td><td></td></tr><tr><td colspan="6">Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $214,719 and $178,609 measured at fair value)</td><td colspan="2">368,106 </td><td></td><td colspan="3"></td><td colspan="2">283,887 </td><td></td></tr><tr><td colspan="6">Trading account liabilities</td><td colspan="2">100,345 </td><td></td><td colspan="3"></td><td colspan="2">95,530 </td><td></td></tr><tr><td colspan="6">Derivative liabilities</td><td colspan="2">40,508 </td><td></td><td colspan="3"></td><td colspan="2">43,432 </td><td></td></tr><tr><td colspan="6">Short-term borrowings (includes $7,200 and $4,690 measured at fair value)</td><td colspan="2">40,429 </td><td></td><td colspan="3"></td><td colspan="2">32,098 </td><td></td></tr><tr><td colspan="6">Accrued expenses and other liabilities (includes $15,064 and $11,473 measured at fair value and $1,104 and $1,209 of reserve for unfunded lending commitments)</td><td colspan="2">213,751 </td><td></td><td colspan="3"></td><td colspan="2">207,527 </td><td></td></tr><tr><td colspan="6">Long-term debt (includes $46,875 and $42,809 measured at fair value)</td><td colspan="2">290,474 </td><td></td><td colspan="3"></td><td colspan="2">302,204 </td><td></td></tr><tr><td colspan="6">Total liabilities</td><td colspan="2">2,964,104 </td><td></td><td colspan="3"></td><td colspan="2">2,888,505 </td><td></td></tr><tr><td colspan="6">Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Shareholders' equity</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,013,928 and 4,088,099 Shares</td><td colspan="2">26,548 </td><td></td><td colspan="3"></td><td colspan="2">28,397 </td><td></td></tr><tr><td colspan="6">Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,774,753,442 and 7,895,457,665 shares</td><td colspan="2">51,376 </td><td></td><td colspan="3"></td><td colspan="2">56,365 </td><td></td></tr><tr><td colspan="6">Retained earnings</td><td colspan="2">233,597 </td><td></td><td colspan="3"></td><td colspan="2">224,672 </td><td></td></tr><tr><td colspan="6">Accumulated other comprehensive income (loss)</td><td colspan="2">(17,629)</td><td></td><td colspan="3"></td><td colspan="2">(17,788)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Total shareholders' equity</td><td colspan="2">293,892 </td><td></td><td colspan="3"></td><td colspan="2">291,646 </td><td></td></tr><tr><td colspan="6">Total liabilities and shareholders' equity</td><td>$</td><td>3,257,996 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Trading account assets</td><td>$</td><td>5,647 </td><td></td><td colspan="3"></td><td>$</td><td>6,054 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases</td><td colspan="2">19,827 </td><td></td><td colspan="3"></td><td colspan="2">18,276 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Allowance for loan and lease losses</td><td colspan="2">(917)</td><td></td><td colspan="3"></td><td colspan="2">(826)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases, net of allowance</td><td colspan="2">18,910 </td><td></td><td colspan="3"></td><td colspan="2">17,450 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">All other assets</td><td colspan="2">281 </td><td></td><td colspan="3"></td><td colspan="2">269 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total assets of consolidated variable interest entities</td><td>$</td><td>24,838 </td><td></td><td colspan="3"></td><td>$</td><td>23,773 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Liabilities of consolidated variable interest entities included in total liabilities above</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3"></td><td colspan="3">Short-term borrowings (includes $0 and $23 of non-recourse short-term borrowings)</td><td>$</td><td>3,343 </td><td></td><td colspan="3"></td><td>$</td><td>2,957 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Long-term debt (includes $9,137 and $8,456 of non-recourse debt)</td><td colspan="2">9,137 </td><td></td><td colspan="3"></td><td colspan="2">8,456 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">All other liabilities (includes $22 and $19 of non-recourse liabilities)</td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total liabilities of consolidated variable interest entities</td><td>$</td><td>12,502 </td><td></td><td colspan="3"></td><td>$</td><td>11,432 </td><td></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">Bank of America 50</td></tr></table> , JPMorgan Chase & Co. Consolidated balance sheets (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions, except share data)</td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks</td><td>$</td><td>27,265 </td><td></td><td colspan="3"></td><td>$</td><td>29,066 </td><td></td></tr><tr><td colspan="3">Deposits with banks</td><td colspan="2">503,554 </td><td></td><td colspan="3"></td><td colspan="2">595,085 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements (included $379,930 and $259,813 at fair value)</td><td colspan="2">392,763 </td><td></td><td colspan="3"></td><td colspan="2">276,152 </td><td></td></tr><tr><td colspan="3">Securities borrowed (included $87,652 and $70,086 at fair value)</td><td colspan="2">199,062 </td><td></td><td colspan="3"></td><td colspan="2">200,436 </td><td></td></tr><tr><td colspan="3">Trading assets (included assets pledged of $176,536 and $128,994)</td><td colspan="2">733,882 </td><td></td><td colspan="3"></td><td colspan="2">540,607 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities (amortized cost of $269,899 and $205,456; included assets pledged of $9,146 and $9,219)</td><td colspan="2">266,252 </td><td></td><td colspan="3"></td><td colspan="2">201,704 </td><td></td></tr><tr><td colspan="3">Held-to-maturity securities </td><td colspan="2">323,746 </td><td></td><td colspan="3"></td><td colspan="2">369,848 </td><td></td></tr><tr><td colspan="3">Investment securities, net of allowance for credit losses</td><td colspan="2">589,998 </td><td></td><td colspan="3"></td><td colspan="2">571,552 </td><td></td></tr><tr><td colspan="3">Loans (included $38,250 and $38,851 at fair value)</td><td colspan="2">1,320,700 </td><td></td><td colspan="3"></td><td colspan="2">1,323,706 </td><td></td></tr><tr><td colspan="3">Allowance for loan losses</td><td colspan="2">(22,991)</td><td></td><td colspan="3"></td><td colspan="2">(22,420)</td><td></td></tr><tr><td colspan="3">Loans, net of allowance for loan losses</td><td colspan="2">1,297,709 </td><td></td><td colspan="3"></td><td colspan="2">1,301,286 </td><td></td></tr><tr><td colspan="3">Accrued interest and accounts receivable</td><td colspan="2">135,692 </td><td></td><td colspan="3"></td><td colspan="2">107,363 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">30,582 </td><td></td><td colspan="3"></td><td colspan="2">30,157 </td><td></td></tr><tr><td colspan="3">Goodwill, MSRs and other intangible assets</td><td colspan="2">64,525 </td><td></td><td colspan="3"></td><td colspan="2">64,381 </td><td></td></tr><tr><td colspan="3">Other assets (included $17,233 and $12,306 at fair value and assets pledged of $6,702 and $6,764)</td><td colspan="2">167,971 </td><td></td><td colspan="3"></td><td colspan="2">159,308 </td><td></td></tr><tr><td colspan="3">Total assets(a)</td><td>$</td><td>4,143,003 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (included $69,387 and $78,384 at fair value)</td><td>$</td><td>2,396,530 </td><td></td><td colspan="3"></td><td>$</td><td>2,400,688 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities loaned or sold under repurchase agreements (included $336,315 and $169,003 at fair value)</td><td colspan="2">400,832 </td><td></td><td colspan="3"></td><td colspan="2">216,535 </td><td></td></tr><tr><td colspan="3">Short-term borrowings (included $26,117 and $20,042 at fair value)</td><td colspan="2">47,308 </td><td></td><td colspan="3"></td><td colspan="2">44,712 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">240,836 </td><td></td><td colspan="3"></td><td colspan="2">180,428 </td><td></td></tr><tr><td colspan="3">Accounts payable and other liabilities (included $5,925 and $5,637 at fair value)</td><td colspan="2">295,813 </td><td></td><td colspan="3"></td><td colspan="2">290,307 </td><td></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)</td><td colspan="2">27,104 </td><td></td><td colspan="3"></td><td colspan="2">23,020 </td><td></td></tr><tr><td colspan="3">Long-term debt (included $93,448 and $87,924 at fair value)</td><td colspan="2">394,028 </td><td></td><td colspan="3"></td><td colspan="2">391,825 </td><td></td></tr><tr><td colspan="3">Total liabilities(a)</td><td colspan="2">3,802,451 </td><td></td><td colspan="3"></td><td colspan="2">3,547,515 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (refer to Notes 22, 23 and 24)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,390,375 and 2,740,375 shares) </td><td colspan="2">23,900 </td><td></td><td colspan="3"></td><td colspan="2">27,404 </td><td></td></tr><tr><td colspan="3">Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)</td><td colspan="2">4,105 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">90,328 </td><td></td><td colspan="3"></td><td colspan="2">90,128 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">356,924 </td><td></td><td colspan="3"></td><td colspan="2">332,901 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="2">(11,338)</td><td></td><td colspan="3"></td><td colspan="2">(10,443)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (1,259,769,168 and 1,228,275,301 shares)</td><td colspan="2">(123,367)</td><td></td><td colspan="3"></td><td colspan="2">(116,217)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">340,552 </td><td></td><td colspan="3"></td><td colspan="2">327,878 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>4,143,003 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr></table>(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions)</td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Trading assets</td><td>$</td><td>2,366 </td><td></td><td colspan="3"></td><td>$</td><td>2,170 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">37,367 </td><td></td><td colspan="3"></td><td colspan="2">37,611 </td><td></td></tr><tr><td colspan="3">All other assets</td><td colspan="2">641 </td><td></td><td colspan="3"></td><td colspan="2">591 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>40,374 </td><td></td><td colspan="3"></td><td>$</td><td>40,372 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs</td><td>$</td><td>27,104 </td><td></td><td colspan="3"></td><td>$</td><td>23,020 </td><td></td></tr><tr><td colspan="3">All other liabilities</td><td colspan="2">335 </td><td></td><td colspan="3"></td><td colspan="2">263 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>27,439 </td><td></td><td colspan="3"></td><td>$</td><td>23,283 </td><td></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 93
q_com085
How did the net income for Bank of America and JPMorgan Chase change for the six months ended June 30, 2024, compared to the same period in 2023?
For Bank of America, the net income for the six months ended June 30, 2024, was $13,571 million, compared to $15,569 million for the same period in 2023, showing a decrease of approximately 12.8%. For JPMorgan Chase, the net income for the six months ended June 30, 2024, was $31,568 million, compared to $27,094 million for the same period in 2023, showing an increase of approximately 16.5%.
Comparison
49;91
0000070858-24-000208;0000019617-24-000453
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | | | | | |---:|:-----------------------------------------------------|:---------------------------|:-------|:-------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (In millions, except per share information) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net interest income | | | | | | | | | | | | | 7 | Interest income | $ | 36,854 | | | $ | 32,354 | | $ | 73,139 | $ | 61,009 | | 8 | Interest expense | 23,152 | | | 18,196 | | | 45,405 | | 32,403 | | | | 9 | Net interest income | 13,702 | | | 14,158 | | | 27,734 | | 28,606 | | | | 11 | Noninterest income | | | | | | | | | | | | | 12 | Fees and commissions | 8,969 | | | 7,961 | | | 17,629 | | 15,855 | | | | 13 | Market making and similar activities | 3,298 | | | 3,697 | | | 7,186 | | 8,409 | | | | 14 | Other income (loss) | (592) | | | (619) | | | (1,354) | | (1,415) | | | | 15 | Total noninterest income | 11,675 | | | 11,039 | | | 23,461 | | 22,849 | | | | 16 | Total revenue, net of interest expense | 25,377 | | | 25,197 | | | 51,195 | | 51,455 | | | | 18 | Provision for credit losses | 1,508 | | | 1,125 | | | 2,827 | | 2,056 | | | | 20 | Noninterest expense | | | | | | | | | | | | | 21 | Compensation and benefits | 9,826 | | | 9,401 | | | 20,021 | | 19,319 | | | | 22 | Occupancy and equipment | 1,818 | | | 1,776 | | | 3,629 | | 3,575 | | | | 23 | Information processing and communications | 1,763 | | | 1,644 | | | 3,563 | | 3,341 | | | | 24 | Product delivery and transaction related | 891 | | | 956 | | | 1,742 | | 1,846 | | | | 25 | Professional fees | 654 | | | 527 | | | 1,202 | | 1,064 | | | | 26 | Marketing | 487 | | | 513 | | | 942 | | 971 | | | | 27 | Other general operating | 870 | | | 1,221 | | | 2,447 | | 2,160 | | | | 30 | Total noninterest expense | 16,309 | | | 16,038 | | | 33,546 | | 32,276 | | | | 31 | Income before income taxes | 7,560 | | | 8,034 | | | 14,822 | | 17,123 | | | | 32 | Income tax expense | 663 | | | 626 | | | 1,251 | | 1,554 | | | | 33 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 34 | Preferred stock dividends | 315 | | | 306 | | | 847 | | 811 | | | | 35 | Net income applicable to common shareholders | $ | 6,582 | | | $ | 7,102 | | $ | 12,724 | $ | 14,758 | | 37 | Per common share information | | | | | | | | | | | | | 38 | Earnings | $ | 0.83 | | | $ | 0.88 | | $ | 1.60 | $ | 1.83 | | 39 | Diluted earnings | 0.83 | | | 0.88 | | | 1.59 | | 1.82 | | | | 41 | Average common shares issued and outstanding | 7,897.9 | | | 8,040.9 | | | 7,933.3 | | 8,053.5 | | | | 42 | Average diluted common shares issued and outstanding | 7,960.9 | | | 8,080.7 | | | 7,996.2 | | 8,162.6 | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:---------------------------|:------|:-------------------------|:--------|:-----|:------|:------|:---|:-------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | | | | | 4 | | Three Months Ended June 30 | | Six Months Ended June 30 | | | | | | | | | | 5 | (Dollars in millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 6 | Net income | $ | 6,897 | | | $ | 7,408 | | $ | 13,571 | $ | 15,569 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | | | | | 8 | Net change in debt securities | (305) | | | 168 | | | 27 | | 723 | | | | 9 | Net change in debit valuation adjustments | 53 | | | (404) | | | (135) | | (394) | | | | 10 | Net change in derivatives | 686 | | | (1,993) | | | 270 | | 49 | | | | 11 | Employee benefit plan adjustments | 25 | | | 9 | | | 48 | | 19 | | | | 12 | Net change in foreign currency translation adjustments | (31) | | | 5 | | | (51) | | 17 | | | | 13 | Other comprehensive income (loss) | 428 | | | (2,215) | | | 159 | | 414 | | | | 14 | Comprehensive income (loss) | $ | 7,325 | | | $ | 5,193 | | $ | 13,730 | $ | 15,983 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 49 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | | | | | | |---:|:-------------------------------------------------|:----------------------------|:-------|:--------------------------|:--------|:-----|:-------|:--------|:---|:--------|:---|:-------| | 1 | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Revenue | | | | | | | | | | | | | 4 | Investment banking fees | $ | 2,304 | | | $ | 1,513 | | $ | 4,258 | $ | 3,162 | | 5 | Principal transactions | 6,814 | | | 6,910 | | | 13,604 | | 14,525 | | | | 6 | Lending- and deposit-related fees | 1,828 | | | 1,828 | | | 3,730 | | 3,448 | | | | 7 | Asset management fees | 4,302 | | | 3,774 | | | 8,448 | | 7,239 | | | | 8 | Commissions and other fees | 1,924 | | | 1,739 | | | 3,729 | | 3,434 | | | | 10 | Investment securities losses | (547) | | | (900) | | | (913) | | (1,768) | | | | 11 | Mortgage fees and related income | 348 | | | 278 | | | 623 | | 499 | | | | 12 | Card income | 1,332 | | | 1,094 | | | 2,550 | | 2,328 | | | | 13 | Other income | 9,149 | | | 3,292 | | | 10,277 | | 4,299 | | | | 14 | Noninterest revenue | 27,454 | | | 19,528 | | | 46,306 | | 37,166 | | | | 15 | Interest income | 48,513 | | | 41,644 | | | 95,951 | | 78,648 | | | | 16 | Interest expense | 25,767 | | | 19,865 | | | 50,123 | | 36,158 | | | | 17 | Net interest income | 22,746 | | | 21,779 | | | 45,828 | | 42,490 | | | | 18 | Total net revenue | 50,200 | | | 41,307 | | | 92,134 | | 79,656 | | | | 20 | Provision for credit losses | 3,052 | | | 2,899 | | | 4,936 | | 5,174 | | | | 22 | Noninterest expense | | | | | | | | | | | | | 23 | Compensation expense | 12,953 | | | 11,216 | | | 26,071 | | 22,892 | | | | 24 | Occupancy expense | 1,248 | | | 1,070 | | | 2,459 | | 2,185 | | | | 25 | Technology, communications and equipment expense | 2,447 | | | 2,267 | | | 4,868 | | 4,451 | | | | 26 | Professional and outside services | 2,722 | | | 2,561 | | | 5,270 | | 5,009 | | | | 27 | Marketing | 1,221 | | | 1,122 | | | 2,381 | | 2,167 | | | | 28 | Other expense | 3,122 | | | 2,586 | | | 5,421 | | 4,225 | | | | 29 | Total noninterest expense | 23,713 | | | 20,822 | | | 46,470 | | 40,929 | | | | 30 | Income before income tax expense | 23,435 | | | 17,586 | | | 40,728 | | 33,553 | | | | 31 | Income tax expense | 5,286 | | | 3,114 | | | 9,160 | | 6,459 | | | | 32 | Net income | $ | 18,149 | | | $ | 14,472 | | $ | 31,568 | $ | 27,094 | | 33 | Net income applicable to common stockholders | $ | 17,718 | | | $ | 14,011 | | $ | 30,661 | $ | 26,204 | | 34 | Net income per common share data | | | | | | | | | | | | | 35 | Basic earnings per share | $ | 6.13 | | | $ | 4.76 | | $ | 10.58 | $ | 8.86 | | 36 | Diluted earnings per share | 6.12 | | | 4.75 | | | 10.56 | | 8.85 | | | | 38 | Weighted-average basic shares | 2,889.8 | | | 2,943.8 | | | 2,899.1 | | 2,956.1 | | | | 39 | Weighted-average diluted shares | 2,894.9 | | | 2,948.3 | | | 2,903.9 | | 2,960.5 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-06-30, page 49: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-06-30, page 91: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td>$</td><td>36,854 </td><td></td><td colspan="3"></td><td>$</td><td>32,354 </td><td></td><td colspan="3"></td><td>$</td><td>73,139 </td><td></td><td colspan="3"></td><td>$</td><td>61,009 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">23,152 </td><td></td><td colspan="3"></td><td colspan="2">18,196 </td><td></td><td colspan="3"></td><td colspan="2">45,405 </td><td></td><td colspan="3"></td><td colspan="2">32,403 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,702 </td><td></td><td colspan="3"></td><td colspan="2">14,158 </td><td></td><td colspan="3"></td><td colspan="2">27,734 </td><td></td><td colspan="3"></td><td colspan="2">28,606 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="2">8,969 </td><td></td><td colspan="3"></td><td colspan="2">7,961 </td><td></td><td colspan="3"></td><td colspan="2">17,629 </td><td></td><td colspan="3"></td><td colspan="2">15,855 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="2">3,298 </td><td></td><td colspan="3"></td><td colspan="2">3,697 </td><td></td><td colspan="3"></td><td colspan="2">7,186 </td><td></td><td colspan="3"></td><td colspan="2">8,409 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="2">(592)</td><td></td><td colspan="3"></td><td colspan="2">(619)</td><td></td><td colspan="3"></td><td colspan="2">(1,354)</td><td></td><td colspan="3"></td><td colspan="2">(1,415)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="2">11,675 </td><td></td><td colspan="3"></td><td colspan="2">11,039 </td><td></td><td colspan="3"></td><td colspan="2">23,461 </td><td></td><td colspan="3"></td><td colspan="2">22,849 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="2">25,377 </td><td></td><td colspan="3"></td><td colspan="2">25,197 </td><td></td><td colspan="3"></td><td colspan="2">51,195 </td><td></td><td colspan="3"></td><td colspan="2">51,455 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,508 </td><td></td><td colspan="3"></td><td colspan="2">1,125 </td><td></td><td colspan="3"></td><td colspan="2">2,827 </td><td></td><td colspan="3"></td><td colspan="2">2,056 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">9,826 </td><td></td><td colspan="3"></td><td colspan="2">9,401 </td><td></td><td colspan="3"></td><td colspan="2">20,021 </td><td></td><td colspan="3"></td><td colspan="2">19,319 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="2">1,818 </td><td></td><td colspan="3"></td><td colspan="2">1,776 </td><td></td><td colspan="3"></td><td colspan="2">3,629 </td><td></td><td colspan="3"></td><td colspan="2">3,575 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">1,763 </td><td></td><td colspan="3"></td><td colspan="2">1,644 </td><td></td><td colspan="3"></td><td colspan="2">3,563 </td><td></td><td colspan="3"></td><td colspan="2">3,341 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="2">891 </td><td></td><td colspan="3"></td><td colspan="2">956 </td><td></td><td colspan="3"></td><td colspan="2">1,742 </td><td></td><td colspan="3"></td><td colspan="2">1,846 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">654 </td><td></td><td colspan="3"></td><td colspan="2">527 </td><td></td><td colspan="3"></td><td colspan="2">1,202 </td><td></td><td colspan="3"></td><td colspan="2">1,064 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">487 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td><td colspan="3"></td><td colspan="2">971 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="2">870 </td><td></td><td colspan="3"></td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">16,309 </td><td></td><td colspan="3"></td><td colspan="2">16,038 </td><td></td><td colspan="3"></td><td colspan="2">33,546 </td><td></td><td colspan="3"></td><td colspan="2">32,276 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">7,560 </td><td></td><td colspan="3"></td><td colspan="2">8,034 </td><td></td><td colspan="3"></td><td colspan="2">14,822 </td><td></td><td colspan="3"></td><td colspan="2">17,123 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">663 </td><td></td><td colspan="3"></td><td colspan="2">626 </td><td></td><td colspan="3"></td><td colspan="2">1,251 </td><td></td><td colspan="3"></td><td colspan="2">1,554 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">847 </td><td></td><td colspan="3"></td><td colspan="2">811 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td>$</td><td>6,582 </td><td></td><td colspan="3"></td><td>$</td><td>7,102 </td><td></td><td colspan="3"></td><td>$</td><td>12,724 </td><td></td><td colspan="3"></td><td>$</td><td>14,758 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td>$</td><td>0.83 </td><td></td><td colspan="3"></td><td>$</td><td>0.88 </td><td></td><td colspan="3"></td><td>$</td><td>1.60 </td><td></td><td colspan="3"></td><td>$</td><td>1.83 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="2">0.83 </td><td></td><td colspan="3"></td><td colspan="2">0.88 </td><td></td><td colspan="3"></td><td colspan="2">1.59 </td><td></td><td colspan="3"></td><td colspan="2">1.82 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="2">7,897.9 </td><td></td><td colspan="3"></td><td colspan="2">8,040.9 </td><td></td><td colspan="3"></td><td colspan="2">7,933.3 </td><td></td><td colspan="3"></td><td colspan="2">8,053.5 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="2">7,960.9 </td><td></td><td colspan="3"></td><td colspan="2">8,080.7 </td><td></td><td colspan="3"></td><td colspan="2">7,996.2 </td><td></td><td colspan="3"></td><td colspan="2">8,162.6 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="24">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three Months Ended June 30</td><td colspan="3"></td><td colspan="9">Six Months Ended June 30</td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>6,897 </td><td></td><td colspan="3"></td><td>$</td><td>7,408 </td><td></td><td colspan="3"></td><td>$</td><td>13,571 </td><td></td><td colspan="3"></td><td>$</td><td>15,569 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="2">(305)</td><td></td><td colspan="3"></td><td colspan="2">168 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="2">53 </td><td></td><td colspan="3"></td><td colspan="2">(404)</td><td></td><td colspan="3"></td><td colspan="2">(135)</td><td></td><td colspan="3"></td><td colspan="2">(394)</td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="2">686 </td><td></td><td colspan="3"></td><td colspan="2">(1,993)</td><td></td><td colspan="3"></td><td colspan="2">270 </td><td></td><td colspan="3"></td><td colspan="2">49 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">48 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">(51)</td><td></td><td colspan="3"></td><td colspan="2">17 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">428 </td><td></td><td colspan="3"></td><td colspan="2">(2,215)</td><td></td><td colspan="3"></td><td colspan="2">159 </td><td></td><td colspan="3"></td><td colspan="2">414 </td><td></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td>$</td><td>7,325 </td><td></td><td colspan="3"></td><td>$</td><td>5,193 </td><td></td><td colspan="3"></td><td>$</td><td>13,730 </td><td></td><td colspan="3"></td><td>$</td><td>15,983 </td><td></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">49 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended June 30,</td><td colspan="3"></td><td colspan="9">Six months ended June 30,</td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>2,304 </td><td></td><td colspan="3"></td><td>$</td><td>1,513 </td><td></td><td colspan="3"></td><td>$</td><td>4,258 </td><td></td><td colspan="3"></td><td>$</td><td>3,162 </td><td></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,814 </td><td></td><td colspan="3"></td><td colspan="2">6,910 </td><td></td><td colspan="3"></td><td colspan="2">13,604 </td><td></td><td colspan="3"></td><td colspan="2">14,525 </td><td></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">1,828 </td><td></td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,448 </td><td></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,302 </td><td></td><td colspan="3"></td><td colspan="2">3,774 </td><td></td><td colspan="3"></td><td colspan="2">8,448 </td><td></td><td colspan="3"></td><td colspan="2">7,239 </td><td></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,924 </td><td></td><td colspan="3"></td><td colspan="2">1,739 </td><td></td><td colspan="3"></td><td colspan="2">3,729 </td><td></td><td colspan="3"></td><td colspan="2">3,434 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(547)</td><td></td><td colspan="3"></td><td colspan="2">(900)</td><td></td><td colspan="3"></td><td colspan="2">(913)</td><td></td><td colspan="3"></td><td colspan="2">(1,768)</td><td></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">348 </td><td></td><td colspan="3"></td><td colspan="2">278 </td><td></td><td colspan="3"></td><td colspan="2">623 </td><td></td><td colspan="3"></td><td colspan="2">499 </td><td></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,332 </td><td></td><td colspan="3"></td><td colspan="2">1,094 </td><td></td><td colspan="3"></td><td colspan="2">2,550 </td><td></td><td colspan="3"></td><td colspan="2">2,328 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">9,149 </td><td></td><td colspan="3"></td><td colspan="2">3,292 </td><td></td><td colspan="3"></td><td colspan="2">10,277 </td><td></td><td colspan="3"></td><td colspan="2">4,299 </td><td></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">27,454 </td><td></td><td colspan="3"></td><td colspan="2">19,528 </td><td></td><td colspan="3"></td><td colspan="2">46,306 </td><td></td><td colspan="3"></td><td colspan="2">37,166 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">48,513 </td><td></td><td colspan="3"></td><td colspan="2">41,644 </td><td></td><td colspan="3"></td><td colspan="2">95,951 </td><td></td><td colspan="3"></td><td colspan="2">78,648 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">25,767 </td><td></td><td colspan="3"></td><td colspan="2">19,865 </td><td></td><td colspan="3"></td><td colspan="2">50,123 </td><td></td><td colspan="3"></td><td colspan="2">36,158 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">22,746 </td><td></td><td colspan="3"></td><td colspan="2">21,779 </td><td></td><td colspan="3"></td><td colspan="2">45,828 </td><td></td><td colspan="3"></td><td colspan="2">42,490 </td><td></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">50,200 </td><td></td><td colspan="3"></td><td colspan="2">41,307 </td><td></td><td colspan="3"></td><td colspan="2">92,134 </td><td></td><td colspan="3"></td><td colspan="2">79,656 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">3,052 </td><td></td><td colspan="3"></td><td colspan="2">2,899 </td><td></td><td colspan="3"></td><td colspan="2">4,936 </td><td></td><td colspan="3"></td><td colspan="2">5,174 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">12,953 </td><td></td><td colspan="3"></td><td colspan="2">11,216 </td><td></td><td colspan="3"></td><td colspan="2">26,071 </td><td></td><td colspan="3"></td><td colspan="2">22,892 </td><td></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,248 </td><td></td><td colspan="3"></td><td colspan="2">1,070 </td><td></td><td colspan="3"></td><td colspan="2">2,459 </td><td></td><td colspan="3"></td><td colspan="2">2,185 </td><td></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,447 </td><td></td><td colspan="3"></td><td colspan="2">2,267 </td><td></td><td colspan="3"></td><td colspan="2">4,868 </td><td></td><td colspan="3"></td><td colspan="2">4,451 </td><td></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,722 </td><td></td><td colspan="3"></td><td colspan="2">2,561 </td><td></td><td colspan="3"></td><td colspan="2">5,270 </td><td></td><td colspan="3"></td><td colspan="2">5,009 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,221 </td><td></td><td colspan="3"></td><td colspan="2">1,122 </td><td></td><td colspan="3"></td><td colspan="2">2,381 </td><td></td><td colspan="3"></td><td colspan="2">2,167 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">3,122 </td><td></td><td colspan="3"></td><td colspan="2">2,586 </td><td></td><td colspan="3"></td><td colspan="2">5,421 </td><td></td><td colspan="3"></td><td colspan="2">4,225 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">23,713 </td><td></td><td colspan="3"></td><td colspan="2">20,822 </td><td></td><td colspan="3"></td><td colspan="2">46,470 </td><td></td><td colspan="3"></td><td colspan="2">40,929 </td><td></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">23,435 </td><td></td><td colspan="3"></td><td colspan="2">17,586 </td><td></td><td colspan="3"></td><td colspan="2">40,728 </td><td></td><td colspan="3"></td><td colspan="2">33,553 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">5,286 </td><td></td><td colspan="3"></td><td colspan="2">3,114 </td><td></td><td colspan="3"></td><td colspan="2">9,160 </td><td></td><td colspan="3"></td><td colspan="2">6,459 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>18,149 </td><td></td><td colspan="3"></td><td>$</td><td>14,472 </td><td></td><td colspan="3"></td><td>$</td><td>31,568 </td><td></td><td colspan="3"></td><td>$</td><td>27,094 </td><td></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>17,718 </td><td></td><td colspan="3"></td><td>$</td><td>14,011 </td><td></td><td colspan="3"></td><td>$</td><td>30,661 </td><td></td><td colspan="3"></td><td>$</td><td>26,204 </td><td></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>6.13 </td><td></td><td colspan="3"></td><td>$</td><td>4.76 </td><td></td><td colspan="3"></td><td>$</td><td>10.58 </td><td></td><td colspan="3"></td><td>$</td><td>8.86 </td><td></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">6.12 </td><td></td><td colspan="3"></td><td colspan="2">4.75 </td><td></td><td colspan="3"></td><td colspan="2">10.56 </td><td></td><td colspan="3"></td><td colspan="2">8.85 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,889.8 </td><td></td><td colspan="3"></td><td colspan="2">2,943.8 </td><td></td><td colspan="3"></td><td colspan="2">2,899.1 </td><td></td><td colspan="3"></td><td colspan="2">2,956.1 </td><td></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,894.9 </td><td></td><td colspan="3"></td><td colspan="2">2,948.3 </td><td></td><td colspan="3"></td><td colspan="2">2,903.9 </td><td></td><td colspan="3"></td><td colspan="2">2,960.5 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 91
q_com086
Compare the provisions for credit losses for American Express and Discover Financial Services for Q2 2023 and Q2 2024.
In Q2 2023, American Express had provisions for credit losses of $1,198 million, which increased to $1,268 million in Q2 2024. Discover Financial Services had provisions for credit losses of $1,305 million in Q2 2023, which decreased to $739 million in Q2 2024.
Comparison
38;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com087
Compare the net income of American Express and Discover Financial Services for Q2 2023 and Q2 2024.
In Q2 2023, American Express had a net income of $2,174 million, which increased to $3,015 million in Q2 2024, a 38.7% increase. Discover Financial Services had a net income of $901 million in Q2 2023, which increased to $1,530 million in Q2 2024, a 69.8% increase.
Comparison
38;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com088
What is the Dividend Payout Ratio for American Express and Discover Financial Services for the three months ended June 30, 2024?
The Dividend Payout Ratio for American Express for the three months ended June 30, 2024, is calculated as follows: Dividends per Share: $0.70 Earnings per Share (Basic): $4.16 Dividend Payout Ratio = Dividends per Share / Earnings per Share Dividend Payout Ratio for American Express = $0.70 / $4.16 = 16.83% The Dividend Payout Ratio for Discover Financial Services for the three months ended June 30, 2024, is calculated as follows: Dividends per Share: $0.70 Earnings per Share (Basic): $6.06 Dividend Payout Ratio = Dividends per Share / Earnings per Share Dividend Payout Ratio for Discover Financial Services = $0.70 / $6.06 = 11.55%
Comparison
2;38;3, 5
0000004962-24-000052;0000004962-24-000052;0001393612-24-000047
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A);ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 2: Table 1: Summary of Financial Performance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------|:--------------------------------------------|:-------|:--------------------|:-----|:------------------------------------------|:-------|:--------------------|:------|:------|:-------|:--------|:-------|:--------|:-------|:-------|:-------|:-------|:-------|:---|:------|:---|:------|:---|:---|:---|:---| | 1 | | As of or for the Three Months EndedJune 30, | | Change2024 vs. 2023 | | As of or for the Six Months EndedJune 30, | | Change2024 vs. 2023 | | | | | | | | | | | | | | | | | | | | | 2 | (Millions, except percentages, per share amounts and where indicated) | 2024 | | 2023 | | | 2024 | | 2023 | | | | | | | | | | | | | | | | | | | | 3 | Selected Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4 | Total revenues net of interest expense | $ | 16,333 | | $ | 15,054 | | $ | 1,279 | | 8 | % | | $ | 32,134 | | $ | 29,335 | | $ | 2,799 | | | 10 | % | | | | 5 | Provisions for credit losses | 1,268 | | 1,198 | | 70 | | | 6 | | 2,537 | | 2,253 | | 284 | | | 13 | | | | | | | | | | | 6 | Total expenses | 11,275 | | 11,122 | | 153 | | | 1 | | 22,662 | | 22,181 | | 481 | | | 2 | | | | | | | | | | | 7 | Pretax income | 3,790 | | 2,734 | | 1,056 | | | 39 | | 6,935 | | 4,901 | | 2,034 | | | 42 | | | | | | | | | | | 8 | Income tax provision | 775 | | 560 | | 215 | | | 38 | | 1,483 | | 911 | | 572 | | | 63 | | | | | | | | | | | 9 | Net income | 3,015 | | 2,174 | | 841 | | | 39 | | 5,452 | | 3,990 | | 1,462 | | | 37 | | | | | | | | | | | 10 | Earnings per common share - diluted (a) | $ | 4.15 | | $ | 2.89 | | $ | 1.26 | | 44 | % | | $ | 7.48 | | $ | 5.29 | | $ | 2.19 | | | 41 | % | | | | 12 | Selected Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13 | Cash and cash equivalents | $ | 52,895 | | $ | 42,958 | | | $ | 9,937 | | 23 | % | | $ | 52,895 | | $ | 42,958 | | | $ | 9,937 | | | 23 | % | | 14 | Card Member receivables | 59,656 | | 58,221 | | | 1,435 | | | 2 | | 59,656 | | 58,221 | | | 1,435 | | | 2 | | | | | | | | | 15 | Card Member loans | 130,851 | | 114,602 | | | 16,249 | | | 14 | | 130,851 | | 114,602 | | | 16,249 | | | 14 | | | | | | | | | 16 | Customer deposits | 133,746 | | 122,756 | | | 10,990 | | | 9 | | 133,746 | | 122,756 | | | 10,990 | | | 9 | | | | | | | | | 17 | Long-term debt | $ | 51,521 | | $ | 46,725 | | | $ | 4,796 | | 10 | % | | $ | 51,521 | | $ | 46,725 | | | $ | 4,796 | | | 10 | % | | 19 | Common Share Statistics (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20 | Cash dividends declared per common share | $ | 0.70 | | $ | 0.60 | | $ | 0.10 | | 17 | % | | $ | 1.40 | | $ | 1.20 | | $ | 0.20 | | | 17 | % | | | | 21 | Average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22 | Basic | 716 | | 740 | | (24) | | | (3) | % | 718 | | 741 | | (23) | | | (3) | % | | | | | | | | | | 23 | Diluted | 717 | | 741 | | (24) | | | (3) | % | 719 | | 742 | | (23) | | | (3) | % | | | | | | | | | | 25 | Selected Metrics and Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | 26 | Network volumes (Billions) | $ | 440.6 | | $ | 426.6 | | $ | 14 | | 3 | % | | $ | 859.8 | | $ | 825.5 | | $ | 34 | | | 4 | % | | | | 27 | Billed business (Billions) | $ | 388.2 | | $ | 368.1 | | $ | 20 | | 5 | % | | $ | 755.2 | | $ | 713.6 | | $ | 42 | | | 6 | % | | | | 28 | Card Member loans and receivables | | | | | | | | | | | | | | | | | | | | | | | | | | | | 29 | Net write-off rate - principal, interest and fees (c) | 2.4 | % | | 2.0 | % | | | | | 2.4 | % | | 1.9 | % | | | | | | | | | | | | | | 30 | Net write-off rate - principal only - consumer and small business (c)(d) | 2.1 | % | | 1.8 | % | | | | | 2.1 | % | | 1.7 | % | | | | | | | | | | | | | | 31 | 30+ days past due as a % of total - consumer and small business (e) | 1.2 | % | | 1.2 | % | | | | | 1.2 | % | | 1.2 | % | | | | | | | | | | | | | | 32 | Effective tax rate | 20.4 | % | | 20.5 | % | | | | | 21.4 | % | | 18.6 | % | | | | | | | | | | | | | | 33 | Return on average equity (f) | 41.4 | % | | 33.0 | % | | | | | 37.9 | % | | 30.9 | % | | | | | | | | | | | | | | 34 | Common Equity Tier 1 | 10.8 | % | | 10.6 | % | | | | | 10.8 | % | | 10.6 | % | | | | | | | | | | | | | (a)Represents net income, less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023, and $29 million for both the six months ended June 30, 2024 and 2023. (b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP. (c)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (d)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints. (e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables. (f)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders' equity for the period. 2 , AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 5: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:---|:-------|:-------|:--------|:-------------------------|:---|:-----------------|:---|:-------------------------------------|:--------------|:------|:-------------------------|:------|:-------|:------|:---|:------|:------|:---|:---------|:---|:-------| | 1 | | | | | | | | AdditionalPaid-inCapital | | RetainedEarnings | | Accumulated Other Comprehensive Loss | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | 2 | | Preferred Stock | Common Stock | | | | | | | | | | | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | | 4 | For the Three Months Ended June 30, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | 5 | Balance at March 31, 2023 | 11 | | $ | 1,056 | | 570,460 | | | $ | 6 | | $ | 4,493 | | $ | 29,037 | | $ | (235) | | $ | (20,297) | $ | 14,060 | | 7 | Net income | - | | - | | - | | | - | | | - | | 901 | | - | | - | | | 901 | | | | | | 8 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | | (235) | | - | | | (235) | | | | | | 9 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | | - | | (708) | | | (708) | | | | | | 10 | Common stock issued under employee benefit plans | - | | - | | 29 | | | - | | | 3 | | - | | - | | - | | | 3 | | | | | | 11 | Common stock issued and stock-based compensation expense | - | | - | | 139 | | | - | | | 12 | | - | | - | | - | | | 12 | | | | | | 13 | Dividends - common stock ($0.70 per share) | - | | - | | - | | | - | | | - | | (177) | | - | | - | | | (177) | | | | | | 16 | Balance at June 30, 2023 | 11 | | $ | 1,056 | | 570,628 | | | $ | 6 | | $ | 4,508 | | $ | 29,761 | | $ | (470) | | $ | (21,005) | $ | 13,856 | | 18 | For the Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | 19 | Balance at March 31, 2024 | 11 | | $ | 1,056 | | 571,595 | | | $ | 6 | | $ | 4,578 | | $ | 30,511 | | $ | (393) | | $ | (21,038) | $ | 14,720 | | 21 | Net income | - | | - | | - | | | - | | | - | | 1,530 | | - | | - | | | 1,530 | | | | | | 22 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | | (5) | | - | | | (5) | | | | | | 23 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | | - | | (26) | | | (26) | | | | | | 24 | Common stock issued under employee benefit plans | - | | - | | 31 | | | - | | | 4 | | - | | - | | - | | | 4 | | | | | | 25 | Common stock issued and stock-based compensation expense | - | | - | | 639 | | | - | | | 21 | | - | | - | | - | | | 21 | | | | | | 27 | Dividends - common stock ($0.70 per share) | - | | - | | - | | | - | | | - | | (177) | | - | | - | | | (177) | | | | | | 30 | Balance at June 30, 2024 | 11 | | $ | 1,056 | | 572,265 | | | $ | 6 | | $ | 4,603 | | $ | 31,864 | | $ | (398) | | $ | (21,064) | $ | 16,067 | See Notes to the Condensed Consolidated Financial Statements. 5
Table 1: Summary of Financial Performance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:-------------------------------------------------------------------------|:--------------------------------------------|:-------|:--------------------|:-----|:------------------------------------------|:-------|:--------------------|:------|:------|:-------|:--------|:-------|:--------|:-------|:-------|:-------|:-------|:-------|:---|:------|:---|:------|:---|:---|:---|:---| | 1 | | As of or for the Three Months EndedJune 30, | | Change2024 vs. 2023 | | As of or for the Six Months EndedJune 30, | | Change2024 vs. 2023 | | | | | | | | | | | | | | | | | | | | | 2 | (Millions, except percentages, per share amounts and where indicated) | 2024 | | 2023 | | | 2024 | | 2023 | | | | | | | | | | | | | | | | | | | | 3 | Selected Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4 | Total revenues net of interest expense | $ | 16,333 | | $ | 15,054 | | $ | 1,279 | | 8 | % | | $ | 32,134 | | $ | 29,335 | | $ | 2,799 | | | 10 | % | | | | 5 | Provisions for credit losses | 1,268 | | 1,198 | | 70 | | | 6 | | 2,537 | | 2,253 | | 284 | | | 13 | | | | | | | | | | | 6 | Total expenses | 11,275 | | 11,122 | | 153 | | | 1 | | 22,662 | | 22,181 | | 481 | | | 2 | | | | | | | | | | | 7 | Pretax income | 3,790 | | 2,734 | | 1,056 | | | 39 | | 6,935 | | 4,901 | | 2,034 | | | 42 | | | | | | | | | | | 8 | Income tax provision | 775 | | 560 | | 215 | | | 38 | | 1,483 | | 911 | | 572 | | | 63 | | | | | | | | | | | 9 | Net income | 3,015 | | 2,174 | | 841 | | | 39 | | 5,452 | | 3,990 | | 1,462 | | | 37 | | | | | | | | | | | 10 | Earnings per common share - diluted (a) | $ | 4.15 | | $ | 2.89 | | $ | 1.26 | | 44 | % | | $ | 7.48 | | $ | 5.29 | | $ | 2.19 | | | 41 | % | | | | 12 | Selected Balance Sheet Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13 | Cash and cash equivalents | $ | 52,895 | | $ | 42,958 | | | $ | 9,937 | | 23 | % | | $ | 52,895 | | $ | 42,958 | | | $ | 9,937 | | | 23 | % | | 14 | Card Member receivables | 59,656 | | 58,221 | | | 1,435 | | | 2 | | 59,656 | | 58,221 | | | 1,435 | | | 2 | | | | | | | | | 15 | Card Member loans | 130,851 | | 114,602 | | | 16,249 | | | 14 | | 130,851 | | 114,602 | | | 16,249 | | | 14 | | | | | | | | | 16 | Customer deposits | 133,746 | | 122,756 | | | 10,990 | | | 9 | | 133,746 | | 122,756 | | | 10,990 | | | 9 | | | | | | | | | 17 | Long-term debt | $ | 51,521 | | $ | 46,725 | | | $ | 4,796 | | 10 | % | | $ | 51,521 | | $ | 46,725 | | | $ | 4,796 | | | 10 | % | | 19 | Common Share Statistics (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20 | Cash dividends declared per common share | $ | 0.70 | | $ | 0.60 | | $ | 0.10 | | 17 | % | | $ | 1.40 | | $ | 1.20 | | $ | 0.20 | | | 17 | % | | | | 21 | Average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | 22 | Basic | 716 | | 740 | | (24) | | | (3) | % | 718 | | 741 | | (23) | | | (3) | % | | | | | | | | | | 23 | Diluted | 717 | | 741 | | (24) | | | (3) | % | 719 | | 742 | | (23) | | | (3) | % | | | | | | | | | | 25 | Selected Metrics and Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | 26 | Network volumes (Billions) | $ | 440.6 | | $ | 426.6 | | $ | 14 | | 3 | % | | $ | 859.8 | | $ | 825.5 | | $ | 34 | | | 4 | % | | | | 27 | Billed business (Billions) | $ | 388.2 | | $ | 368.1 | | $ | 20 | | 5 | % | | $ | 755.2 | | $ | 713.6 | | $ | 42 | | | 6 | % | | | | 28 | Card Member loans and receivables | | | | | | | | | | | | | | | | | | | | | | | | | | | | 29 | Net write-off rate - principal, interest and fees (c) | 2.4 | % | | 2.0 | % | | | | | 2.4 | % | | 1.9 | % | | | | | | | | | | | | | | 30 | Net write-off rate - principal only - consumer and small business (c)(d) | 2.1 | % | | 1.8 | % | | | | | 2.1 | % | | 1.7 | % | | | | | | | | | | | | | | 31 | 30+ days past due as a % of total - consumer and small business (e) | 1.2 | % | | 1.2 | % | | | | | 1.2 | % | | 1.2 | % | | | | | | | | | | | | | | 32 | Effective tax rate | 20.4 | % | | 20.5 | % | | | | | 21.4 | % | | 18.6 | % | | | | | | | | | | | | | | 33 | Return on average equity (f) | 41.4 | % | | 33.0 | % | | | | | 37.9 | % | | 30.9 | % | | | | | | | | | | | | | | 34 | Common Equity Tier 1 | 10.8 | % | | 10.6 | % | | | | | 10.8 | % | | 10.6 | % | | | | | | | | | | | | | (a)Represents net income, less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023, and $29 million for both the six months ended June 30, 2024 and 2023. (b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP. (c)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (d)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints. (e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables. (f)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders' equity for the period. 2 , ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:---|:-------|:-------|:--------|:-------------------------|:---|:-----------------|:---|:-------------------------------------|:--------------|:------|:-------------------------|:------|:-------|:------|:---|:------|:------|:---|:---------|:---|:-------| | 1 | | | | | | | | AdditionalPaid-inCapital | | RetainedEarnings | | Accumulated Other Comprehensive Loss | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | 2 | | Preferred Stock | Common Stock | | | | | | | | | | | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | | 4 | For the Three Months Ended June 30, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | 5 | Balance at March 31, 2023 | 11 | | $ | 1,056 | | 570,460 | | | $ | 6 | | $ | 4,493 | | $ | 29,037 | | $ | (235) | | $ | (20,297) | $ | 14,060 | | 7 | Net income | - | | - | | - | | | - | | | - | | 901 | | - | | - | | | 901 | | | | | | 8 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | | (235) | | - | | | (235) | | | | | | 9 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | | - | | (708) | | | (708) | | | | | | 10 | Common stock issued under employee benefit plans | - | | - | | 29 | | | - | | | 3 | | - | | - | | - | | | 3 | | | | | | 11 | Common stock issued and stock-based compensation expense | - | | - | | 139 | | | - | | | 12 | | - | | - | | - | | | 12 | | | | | | 13 | Dividends - common stock ($0.70 per share) | - | | - | | - | | | - | | | - | | (177) | | - | | - | | | (177) | | | | | | 16 | Balance at June 30, 2023 | 11 | | $ | 1,056 | | 570,628 | | | $ | 6 | | $ | 4,508 | | $ | 29,761 | | $ | (470) | | $ | (21,005) | $ | 13,856 | | 18 | For the Three Months Ended June 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | 19 | Balance at March 31, 2024 | 11 | | $ | 1,056 | | 571,595 | | | $ | 6 | | $ | 4,578 | | $ | 30,511 | | $ | (393) | | $ | (21,038) | $ | 14,720 | | 21 | Net income | - | | - | | - | | | - | | | - | | 1,530 | | - | | - | | | 1,530 | | | | | | 22 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | | (5) | | - | | | (5) | | | | | | 23 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | | - | | (26) | | | (26) | | | | | | 24 | Common stock issued under employee benefit plans | - | | - | | 31 | | | - | | | 4 | | - | | - | | - | | | 4 | | | | | | 25 | Common stock issued and stock-based compensation expense | - | | - | | 639 | | | - | | | 21 | | - | | - | | - | | | 21 | | | | | | 27 | Dividends - common stock ($0.70 per share) | - | | - | | - | | | - | | | - | | (177) | | - | | - | | | (177) | | | | | | 30 | Balance at June 30, 2024 | 11 | | $ | 1,056 | | 572,265 | | | $ | 6 | | $ | 4,603 | | $ | 31,864 | | $ | (398) | | $ | (21,064) | $ | 16,067 | See Notes to the Condensed Consolidated Financial Statements. 5
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 2: Table 1: Summary of Financial Performance <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">As of or for the Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="9" rowspan="2">Change2024 vs. 2023</td><td colspan="3"></td><td colspan="9">As of or for the Six Months EndedJune 30,</td><td colspan="3"></td><td colspan="9" rowspan="2">Change2024 vs. 2023</td></tr><tr><td colspan="3">(Millions, except percentages, per share amounts and where indicated)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Selected Income Statement Data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td>$</td><td colspan="2">16,333</td><td colspan="3"></td><td>$</td><td colspan="2">15,054</td><td colspan="3"></td><td>$</td><td>1,279 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">32,134</td><td colspan="3"></td><td>$</td><td colspan="2">29,335</td><td colspan="3"></td><td>$</td><td>2,799 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3">1,268</td><td colspan="3"></td><td colspan="3">1,198</td><td colspan="3"></td><td colspan="2">70 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="3">2,537</td><td colspan="3"></td><td colspan="3">2,253</td><td colspan="3"></td><td colspan="2">284 </td><td></td><td colspan="3"></td><td colspan="2">13 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="3">11,275</td><td colspan="3"></td><td colspan="3">11,122</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3">22,662</td><td colspan="3"></td><td colspan="3">22,181</td><td colspan="3"></td><td colspan="2">481 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="3">3,790</td><td colspan="3"></td><td colspan="3">2,734</td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="3">6,935</td><td colspan="3"></td><td colspan="3">4,901</td><td colspan="3"></td><td colspan="2">2,034 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="3">775</td><td colspan="3"></td><td colspan="3">560</td><td colspan="3"></td><td colspan="2">215 </td><td></td><td colspan="3"></td><td colspan="2">38 </td><td></td><td colspan="3"></td><td colspan="3">1,483</td><td colspan="3"></td><td colspan="3">911</td><td colspan="3"></td><td colspan="2">572 </td><td></td><td colspan="3"></td><td colspan="2">63 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3">3,015</td><td colspan="3"></td><td colspan="3">2,174</td><td colspan="3"></td><td colspan="2">841 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="3">5,452</td><td colspan="3"></td><td colspan="3">3,990</td><td colspan="3"></td><td colspan="2">1,462 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Earnings per common share - diluted (a)</td><td colspan="3"></td><td>$</td><td colspan="2">4.15</td><td colspan="3"></td><td>$</td><td colspan="2">2.89</td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">7.48</td><td colspan="3"></td><td>$</td><td colspan="2">5.29</td><td colspan="3"></td><td>$</td><td>2.19 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Selected Balance Sheet Data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td colspan="2">52,895</td><td colspan="3"></td><td>$</td><td>42,958 </td><td></td><td colspan="3"></td><td>$</td><td>9,937 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">52,895</td><td colspan="3"></td><td>$</td><td>42,958 </td><td></td><td colspan="3"></td><td>$</td><td>9,937 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="3">59,656</td><td colspan="3"></td><td colspan="2">58,221 </td><td></td><td colspan="3"></td><td colspan="2">1,435 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="3">59,656</td><td colspan="3"></td><td colspan="2">58,221 </td><td></td><td colspan="3"></td><td colspan="2">1,435 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="3">130,851</td><td colspan="3"></td><td colspan="2">114,602 </td><td></td><td colspan="3"></td><td colspan="2">16,249 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="3">130,851</td><td colspan="3"></td><td colspan="2">114,602 </td><td></td><td colspan="3"></td><td colspan="2">16,249 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td colspan="3">133,746</td><td colspan="3"></td><td colspan="2">122,756 </td><td></td><td colspan="3"></td><td colspan="2">10,990 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="3">133,746</td><td colspan="3"></td><td colspan="2">122,756 </td><td></td><td colspan="3"></td><td colspan="2">10,990 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td>$</td><td colspan="2">51,521</td><td colspan="3"></td><td>$</td><td>46,725 </td><td></td><td colspan="3"></td><td>$</td><td>4,796 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">51,521</td><td colspan="3"></td><td>$</td><td>46,725 </td><td></td><td colspan="3"></td><td>$</td><td>4,796 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common Share Statistics (b)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared per common share</td><td colspan="3"></td><td>$</td><td colspan="2">0.70</td><td colspan="3"></td><td>$</td><td colspan="2">0.60</td><td colspan="3"></td><td>$</td><td>0.10 </td><td></td><td colspan="3"></td><td colspan="2">17 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">1.40</td><td colspan="3"></td><td>$</td><td colspan="2">1.20</td><td colspan="3"></td><td>$</td><td>0.20 </td><td></td><td colspan="3"></td><td colspan="2">17 </td><td>%</td></tr><tr><td colspan="3">Average common shares outstanding:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="3">716</td><td colspan="3"></td><td colspan="3">740</td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td><td colspan="3"></td><td colspan="3">718</td><td colspan="3"></td><td colspan="3">741</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="3">717</td><td colspan="3"></td><td colspan="3">741</td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td><td colspan="3"></td><td colspan="3">719</td><td colspan="3"></td><td colspan="3">742</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Selected Metrics and Ratios</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Network volumes (Billions)</td><td colspan="3"></td><td>$</td><td colspan="2">440.6</td><td colspan="3"></td><td>$</td><td colspan="2">426.6</td><td colspan="3"></td><td>$</td><td>14 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">859.8</td><td colspan="3"></td><td>$</td><td colspan="2">825.5</td><td colspan="3"></td><td>$</td><td>34 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td>%</td></tr><tr><td colspan="3">Billed business (Billions)</td><td colspan="3"></td><td>$</td><td colspan="2">388.2</td><td colspan="3"></td><td>$</td><td colspan="2">368.1</td><td colspan="3"></td><td>$</td><td>20 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">755.2</td><td colspan="3"></td><td>$</td><td colspan="2">713.6</td><td colspan="3"></td><td>$</td><td>42 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td>%</td></tr><tr><td colspan="3">Card Member loans and receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net write-off rate - principal, interest and fees (c)</td><td colspan="3"></td><td colspan="2">2.4 </td><td>%</td><td colspan="3"></td><td colspan="2">2.0 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.4 </td><td>%</td><td colspan="3"></td><td colspan="2">1.9 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net write-off rate - principal only - consumer and small business (c)(d)</td><td colspan="3"></td><td colspan="2">2.1 </td><td>%</td><td colspan="3"></td><td colspan="2">1.8 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.1 </td><td>%</td><td colspan="3"></td><td colspan="2">1.7 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">30+ days past due as a % of total - consumer and small business (e)</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Effective tax rate</td><td colspan="3"></td><td colspan="2">20.4 </td><td>%</td><td colspan="3"></td><td colspan="2">20.5 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">21.4 </td><td>%</td><td colspan="3"></td><td colspan="2">18.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Return on average equity (f)</td><td colspan="3"></td><td colspan="2">41.4 </td><td>%</td><td colspan="3"></td><td colspan="2">33.0 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37.9 </td><td>%</td><td colspan="3"></td><td colspan="2">30.9 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common Equity Tier 1 </td><td colspan="3"></td><td colspan="2">10.8 </td><td>%</td><td colspan="3"></td><td colspan="2">10.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10.8 </td><td>%</td><td colspan="3"></td><td colspan="2">10.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td></tr></table>(a)Represents net income, less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023, and $29 million for both the six months ended June 30, 2024 and 2023. (b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP. (c)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (d)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints. (e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables. (f)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders' equity for the period. 2 , AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 5: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Loss</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="9">Preferred Stock</td><td colspan="3"></td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="54">For the Three Months Ended June 30, 2023</td></tr><tr><td colspan="3">Balance at March 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,460 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,493 </td><td></td><td colspan="3"></td><td>$</td><td>29,037 </td><td></td><td colspan="3"></td><td>$</td><td>(235)</td><td></td><td colspan="3"></td><td>$</td><td>(20,297)</td><td></td><td colspan="3"></td><td>$</td><td>14,060 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">901 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">901 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(708)</td><td></td><td colspan="3"></td><td colspan="2">(708)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($0.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at June 30, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,628 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>29,761 </td><td></td><td colspan="3"></td><td>$</td><td>(470)</td><td></td><td colspan="3"></td><td>$</td><td>(21,005)</td><td></td><td colspan="3"></td><td>$</td><td>13,856 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="54">For the Three Months Ended June 30, 2024</td></tr><tr><td colspan="3">Balance at March 31, 2024</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">571,595 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,578 </td><td></td><td colspan="3"></td><td>$</td><td>30,511 </td><td></td><td colspan="3"></td><td>$</td><td>(393)</td><td></td><td colspan="3"></td><td>$</td><td>(21,038)</td><td></td><td colspan="3"></td><td>$</td><td>14,720 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,530 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,530 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(26)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($0.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at June 30, 2024</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">572,265 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,603 </td><td></td><td colspan="3"></td><td>$</td><td>31,864 </td><td></td><td colspan="3"></td><td>$</td><td>(398)</td><td></td><td colspan="3"></td><td>$</td><td>(21,064)</td><td></td><td colspan="3"></td><td>$</td><td>16,067 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 5
Table 1: Summary of Financial Performance <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">As of or for the Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="9" rowspan="2">Change2024 vs. 2023</td><td colspan="3"></td><td colspan="9">As of or for the Six Months EndedJune 30,</td><td colspan="3"></td><td colspan="9" rowspan="2">Change2024 vs. 2023</td></tr><tr><td colspan="3">(Millions, except percentages, per share amounts and where indicated)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td></tr><tr><td colspan="3">Selected Income Statement Data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td>$</td><td colspan="2">16,333</td><td colspan="3"></td><td>$</td><td colspan="2">15,054</td><td colspan="3"></td><td>$</td><td>1,279 </td><td></td><td colspan="3"></td><td colspan="2">8 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">32,134</td><td colspan="3"></td><td>$</td><td colspan="2">29,335</td><td colspan="3"></td><td>$</td><td>2,799 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3">1,268</td><td colspan="3"></td><td colspan="3">1,198</td><td colspan="3"></td><td colspan="2">70 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="3">2,537</td><td colspan="3"></td><td colspan="3">2,253</td><td colspan="3"></td><td colspan="2">284 </td><td></td><td colspan="3"></td><td colspan="2">13 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="3">11,275</td><td colspan="3"></td><td colspan="3">11,122</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="3">22,662</td><td colspan="3"></td><td colspan="3">22,181</td><td colspan="3"></td><td colspan="2">481 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="3">3,790</td><td colspan="3"></td><td colspan="3">2,734</td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="3">6,935</td><td colspan="3"></td><td colspan="3">4,901</td><td colspan="3"></td><td colspan="2">2,034 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="3">775</td><td colspan="3"></td><td colspan="3">560</td><td colspan="3"></td><td colspan="2">215 </td><td></td><td colspan="3"></td><td colspan="2">38 </td><td></td><td colspan="3"></td><td colspan="3">1,483</td><td colspan="3"></td><td colspan="3">911</td><td colspan="3"></td><td colspan="2">572 </td><td></td><td colspan="3"></td><td colspan="2">63 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3">3,015</td><td colspan="3"></td><td colspan="3">2,174</td><td colspan="3"></td><td colspan="2">841 </td><td></td><td colspan="3"></td><td colspan="2">39 </td><td></td><td colspan="3"></td><td colspan="3">5,452</td><td colspan="3"></td><td colspan="3">3,990</td><td colspan="3"></td><td colspan="2">1,462 </td><td></td><td colspan="3"></td><td colspan="2">37 </td><td></td></tr><tr><td colspan="3">Earnings per common share - diluted (a)</td><td colspan="3"></td><td>$</td><td colspan="2">4.15</td><td colspan="3"></td><td>$</td><td colspan="2">2.89</td><td colspan="3"></td><td>$</td><td>1.26 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">7.48</td><td colspan="3"></td><td>$</td><td colspan="2">5.29</td><td colspan="3"></td><td>$</td><td>2.19 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Selected Balance Sheet Data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td colspan="2">52,895</td><td colspan="3"></td><td>$</td><td>42,958 </td><td></td><td colspan="3"></td><td>$</td><td>9,937 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">52,895</td><td colspan="3"></td><td>$</td><td>42,958 </td><td></td><td colspan="3"></td><td>$</td><td>9,937 </td><td></td><td colspan="3"></td><td colspan="2">23 </td><td>%</td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="3">59,656</td><td colspan="3"></td><td colspan="2">58,221 </td><td></td><td colspan="3"></td><td colspan="2">1,435 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="3">59,656</td><td colspan="3"></td><td colspan="2">58,221 </td><td></td><td colspan="3"></td><td colspan="2">1,435 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="3">130,851</td><td colspan="3"></td><td colspan="2">114,602 </td><td></td><td colspan="3"></td><td colspan="2">16,249 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="3">130,851</td><td colspan="3"></td><td colspan="2">114,602 </td><td></td><td colspan="3"></td><td colspan="2">16,249 </td><td></td><td colspan="3"></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td colspan="3">133,746</td><td colspan="3"></td><td colspan="2">122,756 </td><td></td><td colspan="3"></td><td colspan="2">10,990 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="3">133,746</td><td colspan="3"></td><td colspan="2">122,756 </td><td></td><td colspan="3"></td><td colspan="2">10,990 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td>$</td><td colspan="2">51,521</td><td colspan="3"></td><td>$</td><td>46,725 </td><td></td><td colspan="3"></td><td>$</td><td>4,796 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">51,521</td><td colspan="3"></td><td>$</td><td>46,725 </td><td></td><td colspan="3"></td><td>$</td><td>4,796 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common Share Statistics (b)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared per common share</td><td colspan="3"></td><td>$</td><td colspan="2">0.70</td><td colspan="3"></td><td>$</td><td colspan="2">0.60</td><td colspan="3"></td><td>$</td><td>0.10 </td><td></td><td colspan="3"></td><td colspan="2">17 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">1.40</td><td colspan="3"></td><td>$</td><td colspan="2">1.20</td><td colspan="3"></td><td>$</td><td>0.20 </td><td></td><td colspan="3"></td><td colspan="2">17 </td><td>%</td></tr><tr><td colspan="3">Average common shares outstanding:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="3">716</td><td colspan="3"></td><td colspan="3">740</td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td><td colspan="3"></td><td colspan="3">718</td><td colspan="3"></td><td colspan="3">741</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="3">717</td><td colspan="3"></td><td colspan="3">741</td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td><td colspan="3"></td><td colspan="3">719</td><td colspan="3"></td><td colspan="3">742</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">(3)</td><td>%</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Selected Metrics and Ratios</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Network volumes (Billions)</td><td colspan="3"></td><td>$</td><td colspan="2">440.6</td><td colspan="3"></td><td>$</td><td colspan="2">426.6</td><td colspan="3"></td><td>$</td><td>14 </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">859.8</td><td colspan="3"></td><td>$</td><td colspan="2">825.5</td><td colspan="3"></td><td>$</td><td>34 </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td>%</td></tr><tr><td colspan="3">Billed business (Billions)</td><td colspan="3"></td><td>$</td><td colspan="2">388.2</td><td colspan="3"></td><td>$</td><td colspan="2">368.1</td><td colspan="3"></td><td>$</td><td>20 </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td>%</td><td colspan="3"></td><td>$</td><td colspan="2">755.2</td><td colspan="3"></td><td>$</td><td colspan="2">713.6</td><td colspan="3"></td><td>$</td><td>42 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td>%</td></tr><tr><td colspan="3">Card Member loans and receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net write-off rate - principal, interest and fees (c)</td><td colspan="3"></td><td colspan="2">2.4 </td><td>%</td><td colspan="3"></td><td colspan="2">2.0 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.4 </td><td>%</td><td colspan="3"></td><td colspan="2">1.9 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net write-off rate - principal only - consumer and small business (c)(d)</td><td colspan="3"></td><td colspan="2">2.1 </td><td>%</td><td colspan="3"></td><td colspan="2">1.8 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">2.1 </td><td>%</td><td colspan="3"></td><td colspan="2">1.7 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">30+ days past due as a % of total - consumer and small business (e)</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="2">1.2 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Effective tax rate</td><td colspan="3"></td><td colspan="2">20.4 </td><td>%</td><td colspan="3"></td><td colspan="2">20.5 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">21.4 </td><td>%</td><td colspan="3"></td><td colspan="2">18.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Return on average equity (f)</td><td colspan="3"></td><td colspan="2">41.4 </td><td>%</td><td colspan="3"></td><td colspan="2">33.0 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">37.9 </td><td>%</td><td colspan="3"></td><td colspan="2">30.9 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common Equity Tier 1 </td><td colspan="3"></td><td colspan="2">10.8 </td><td>%</td><td colspan="3"></td><td colspan="2">10.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10.8 </td><td>%</td><td colspan="3"></td><td colspan="2">10.6 </td><td>%</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td></tr></table>(a)Represents net income, less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023, and $29 million for both the six months ended June 30, 2024 and 2023. (b)Our common stock trades principally on The New York Stock Exchange under the trading symbol AXP. (c)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (d)A net write-off rate based on principal losses only is not available for corporate receivables due to system constraints. (e)For corporate receivables, delinquency data is tracked based on days past billing status rather than days past due. Refer to Table 12 for 90+ days past billing metrics for corporate receivables. (f)Return on average equity (ROE) is calculated by dividing (i) annualized net income for the period by (ii) average shareholders' equity for the period. 2 , ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Loss</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="9">Preferred Stock</td><td colspan="3"></td><td colspan="9">Common Stock</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="54">For the Three Months Ended June 30, 2023</td></tr><tr><td colspan="3">Balance at March 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,460 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,493 </td><td></td><td colspan="3"></td><td>$</td><td>29,037 </td><td></td><td colspan="3"></td><td>$</td><td>(235)</td><td></td><td colspan="3"></td><td>$</td><td>(20,297)</td><td></td><td colspan="3"></td><td>$</td><td>14,060 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">901 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">901 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(708)</td><td></td><td colspan="3"></td><td colspan="2">(708)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($0.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at June 30, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,628 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>29,761 </td><td></td><td colspan="3"></td><td>$</td><td>(470)</td><td></td><td colspan="3"></td><td>$</td><td>(21,005)</td><td></td><td colspan="3"></td><td>$</td><td>13,856 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="54">For the Three Months Ended June 30, 2024</td></tr><tr><td colspan="3">Balance at March 31, 2024</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">571,595 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,578 </td><td></td><td colspan="3"></td><td>$</td><td>30,511 </td><td></td><td colspan="3"></td><td>$</td><td>(393)</td><td></td><td colspan="3"></td><td>$</td><td>(21,038)</td><td></td><td colspan="3"></td><td>$</td><td>14,720 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,530 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,530 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(26)</td><td></td><td colspan="3"></td><td colspan="2">(26)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">31 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">21 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($0.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(177)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at June 30, 2024</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">572,265 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,603 </td><td></td><td colspan="3"></td><td>$</td><td>31,864 </td><td></td><td colspan="3"></td><td>$</td><td>(398)</td><td></td><td colspan="3"></td><td>$</td><td>(21,064)</td><td></td><td colspan="3"></td><td>$</td><td>16,067 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 5
q_com089
What is the revenue growth rate for American Express and Discover Financial Services for the three months ended June 30, 2024, compared to the same period in 2023?
The revenue growth rate for American Express for the three months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Revenue for Q2 2024: $16,333 million Revenue for Q2 2023: $15,054 million Revenue Growth Rate = ((Revenue for Q2 2024 - Revenue for Q2 2023) / Revenue for Q2 2023) * 100 Revenue Growth Rate for American Express = (($16,333 million - $15,054 million) / $15,054 million) * 100 = 8.50% The revenue growth rate for Discover Financial Services for the three months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Revenue for Q2 2024: $4,971 million Revenue for Q2 2023: $4,290 million Revenue Growth Rate = ((Revenue for Q2 2024 - Revenue for Q2 2023) / Revenue for Q2 2023) * 100 Revenue Growth Rate for Discover Financial Services = (($4,971 million - $4,290 million) / $4,290 million) * 100 = 15.87%
Comparison
38;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com090
What is the cost growth rate for American Express and Discover Financial Services for the three months ended June 30, 2024, compared to the same period in 2023?
The cost growth rate for American Express for the three months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Total Expenses for Q2 2024: $11,275 million Total Expenses for Q2 2023: $11,122 million Cost Growth Rate = ((Total Expenses for Q2 2024 - Total Expenses for Q2 2023) / Total Expenses for Q2 2023) * 100 Cost Growth Rate for American Express = (($11,275 million - $11,122 million) / $11,122 million) * 100 = 1.38% The cost growth rate for Discover Financial Services for the three months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Total Expenses for Q2 2024: $1,729 million Total Expenses for Q2 2023: $1,404 million Cost Growth Rate = ((Total Expenses for Q2 2024 - Total Expenses for Q2 2023) / Total Expenses for Q2 2023) * 100 Cost Growth Rate for Discover Financial Services = (($1,729 million - $1,404 million) / $1,404 million) * 100 = 23.14%
Comparison
38;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com091
What is the margin growth rate for American Express and Discover Financial Services for the three months ended June 30, 2024, compared to the same period in 2023?
Margin Growth Rate for American Express: Net income margin for 2024 = Net Income / Total Revenues Net of Interest Expense Net income for Q2 2024 = $3,015 million Total revenues net of interest expense for Q2 2024 = $16,333 million Net income margin for Q2 2024 = $3,015 / $16,333 ≈ 18.45% Net income for Q2 2023 = $2,174 million Total revenues net of interest expense for Q2 2023 = $15,054 million Net income margin for Q2 2023 = $2,174 / $15,054 ≈ 14.45% Margin Growth Rate = ((Net Income Margin for Q2 2024 - Net Income Margin for Q2 2023) / Net Income Margin for Q2 2023) * 100 = ((18.45% - 14.45%) / 14.45%) * 100 = (4% / 14.45%) * 100 ≈ 27.72% Margin Growth Rate for American Express ≈ 27.72% Margin Growth Rate for Discover Financial Services: Net income margin for 2024 = Net Income / Total Revenues Net income for Q2 2024 = $1,530 million Total revenues for Q2 2024 = $4,971 million (interest income) + $1,014 million (other income) = $5,985 million Net income margin for Q2 2024 = $1,530 / $5,985 ≈ 25.58% Net income for Q2 2023 = $901 million Total revenues for Q2 2023 = $4,290 million (interest income) + $701 million (other income) = $4,991 million Net income margin for Q2 2023 = $901 / $4,991 ≈ 18.05% Margin Growth Rate = ((Net Income Margin for Q2 2024 - Net Income Margin for Q2 2023) / Net Income Margin for Q2 2023) * 100 = ((25.58% - 18.05%) / 18.05%) * 100 = (7.53% / 18.05%) * 100 ≈ 41.72% Margin Growth Rate for Discover Financial Services ≈ 41.72%
Comparison
38;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:------|:-----|:-------|:---|:------| | 1 | Three Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 8,855 | | | $ | 8,481 | | 5 | Net card fees | 2,060 | | | 1,789 | | | | 6 | Service fees and other revenue | 1,280 | | | 1,232 | | | | 7 | Processed revenue | 408 | | | 447 | | | | 8 | Total non-interest revenues | 12,603 | | | 11,949 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 5,092 | | | 4,213 | | | | 11 | Interest and dividends on investment securities | 25 | | | 34 | | | | 12 | Deposits with banks and other | 677 | | | 528 | | | | 13 | Total interest income | 5,794 | | | 4,775 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 1,425 | | | 1,196 | | | | 16 | Long-term debt and other | 639 | | | 474 | | | | 17 | Total interest expense | 2,064 | | | 1,670 | | | | 18 | Net interest income | 3,730 | | | 3,105 | | | | 19 | Total revenues net of interest expense | 16,333 | | | 15,054 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 226 | | | 230 | | | | 22 | Card Member loans | 970 | | | 923 | | | | 23 | Other | 72 | | | 45 | | | | 24 | Total provisions for credit losses | 1,268 | | | 1,198 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 15,065 | | | 13,856 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 4,227 | | | 3,956 | | | | 28 | Business development | 1,427 | | | 1,388 | | | | 29 | Card Member services | 1,154 | | | 949 | | | | 30 | Marketing | 1,480 | | | 1,408 | | | | 31 | Salaries and employee benefits | 1,949 | | | 1,875 | | | | 32 | Other, net | 1,038 | | | 1,546 | | | | 33 | Total expenses | 11,275 | | | 11,122 | | | | 34 | Pretax income | 3,790 | | | 2,734 | | | | 35 | Income tax provision | 775 | | | 560 | | | | 36 | Net income | $ | 3,015 | | | $ | 2,174 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 4.16 | | | $ | 2.89 | | 39 | Diluted | $ | 4.15 | | | $ | 2.89 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 740 | | | | 42 | Diluted | | | | 741 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 38: ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
ITEM 1. FINANCIAL STATEMENTS AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Three Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>8,855 </td><td></td><td colspan="3"></td><td>$</td><td>8,481 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">2,060 </td><td></td><td colspan="3"></td><td colspan="2">1,789 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">1,280 </td><td></td><td colspan="3"></td><td colspan="2">1,232 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">408 </td><td></td><td colspan="3"></td><td colspan="2">447 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">12,603 </td><td></td><td colspan="3"></td><td colspan="2">11,949 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">5,092 </td><td></td><td colspan="3"></td><td colspan="2">4,213 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">34 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="3"></td><td colspan="2">528 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">5,794 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">1,425 </td><td></td><td colspan="3"></td><td colspan="2">1,196 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">639 </td><td></td><td colspan="3"></td><td colspan="2">474 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">2,064 </td><td></td><td colspan="3"></td><td colspan="2">1,670 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">3,730 </td><td></td><td colspan="3"></td><td colspan="2">3,105 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">16,333 </td><td></td><td colspan="3"></td><td colspan="2">15,054 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">226 </td><td></td><td colspan="3"></td><td colspan="2">230 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">923 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">1,268 </td><td></td><td colspan="3"></td><td colspan="2">1,198 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">15,065 </td><td></td><td colspan="3"></td><td colspan="2">13,856 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">4,227 </td><td></td><td colspan="3"></td><td colspan="2">3,956 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">1,427 </td><td></td><td colspan="3"></td><td colspan="2">1,388 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">1,154 </td><td></td><td colspan="3"></td><td colspan="2">949 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">1,480 </td><td></td><td colspan="3"></td><td colspan="2">1,408 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">1,949 </td><td></td><td colspan="3"></td><td colspan="2">1,875 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">1,038 </td><td></td><td colspan="3"></td><td colspan="2">1,546 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">11,275 </td><td></td><td colspan="3"></td><td colspan="2">11,122 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">3,790 </td><td></td><td colspan="3"></td><td colspan="2">2,734 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">775 </td><td></td><td colspan="3"></td><td colspan="2">560 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>4.16 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>4.15 </td><td></td><td colspan="3"></td><td>$</td><td>2.89 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">740 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $23 million and $17 million for the three months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $15 million for both the three months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 38 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com092
What is the net income growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The net income growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Net Income for H1 2024: $5,452 million Net Income for H1 2023: $3,990 million Net Income Growth Rate = ((Net Income for H1 2024 - Net Income for H1 2023) / Net Income for H1 2023) * 100 Net Income Growth Rate for American Express = (($5,452 million - $3,990 million) / $3,990 million) * 100 = 36.67% The net income growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Net Income for H1 2024: $1,838 million Net Income for H1 2023: $1,869 million Net Income Growth Rate = ((Net Income for H1 2024 - Net Income for H1 2023) / Net Income for H1 2023) * 100 Net Income Growth Rate for Discover Financial Services = (($1,838 million - $1,869 million) / $1,869 million) * 100 = -1.66%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com093
What is the interest income growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023
The interest income growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Interest Income for H1 2024: $11,569 million Interest Income for H1 2023: $9,191 million Interest Income Growth Rate = ((Interest Income for H1 2024 - Interest Income for H1 2023) / Interest Income for H1 2023) * 100 Interest Income Growth Rate for American Express = (($11,569 million - $9,191 million) / $9,191 million) * 100 = 25.88% The interest income growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Interest Income for H1 2024: $9,919 million Interest Income for H1 2023: $8,367 million Interest Income Growth Rate = ((Interest Income for H1 2024 - Interest Income for H1 2023) / Interest Income for H1 2023) * 100 Interest Income Growth Rate for Discover Financial Services = (($9,919 million - $8,367 million) / $8,367 million) * 100 = 18.54%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com094
What is the interest expense growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The interest expense growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Interest Expense for H1 2024: $4,070 million Interest Expense for H1 2023: $3,103 million Interest Expense Growth Rate = ((Interest Expense for H1 2024 - Interest Expense for H1 2023) / Interest Expense for H1 2023) * 100 Interest Expense Growth Rate for American Express = (($4,070 million - $3,103 million) / $3,103 million) * 100 = 31.19% The interest expense growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Interest Expense for H1 2024: $2,908 million Interest Expense for H1 2023: $2,058 million Interest Expense Growth Rate = ((Interest Expense for H1 2024 - Interest Expense for H1 2023) / Interest Expense for H1 2023) * 100 Interest Expense Growth Rate for Discover Financial Services = (($2,908 million - $2,058 million) / $2,058 million) * 100 = 41.28%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com095
What is the net interest income growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The net interest income growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Net Interest Income for H1 2024: $7,499 million Net Interest Income for H1 2023: $6,088 million Net Interest Income Growth Rate = ((Net Interest Income for H1 2024 - Net Interest Income for H1 2023) / Net Interest Income for H1 2023) * 100 Net Interest Income Growth Rate for American Express = (($7,499 million - $6,088 million) / $6,088 million) * 100 = 23.16% The net interest income growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Net Interest Income for H1 2024: $7,011 million Net Interest Income for H1 2023: $6,309 million Net Interest Income Growth Rate = ((Net Interest Income for H1 2024 - Net Interest Income for H1 2023) / Net Interest Income for H1 2023) * 100 Net Interest Income Growth Rate for Discover Financial Services = (($7,011 million - $6,309 million) / $6,309 million) * 100 = 11.13%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com096
What is the provision for credit losses growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The provision for credit losses growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Provision for Credit Losses for H1 2024: $2,537 million Provision for Credit Losses for H1 2023: $2,253 million Provision for Credit Losses Growth Rate = ((Provision for Credit Losses for H1 2024 - Provision for Credit Losses for H1 2023) / Provision for Credit Losses for H1 2023) * 100 Provision for Credit Losses Growth Rate for American Express = (($2,537 million - $2,253 million) / $2,253 million) * 100 = 12.60% The provision for credit losses growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Provision for Credit Losses for H1 2024: $2,236 million Provision for Credit Losses for H1 2023: $2,407 million Provision for Credit Losses Growth Rate = ((Provision for Credit Losses for H1 2024 - Provision for Credit Losses for H1 2023) / Provision for Credit Losses for H1 2023) * 100 Provision for Credit Losses Growth Rate for Discover Financial Services = (($2,236 million - $2,407 million) / $2,407 million) * 100 = -7.10%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com097
What is the total expenses growth rate for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The total expenses growth rate for American Express for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Total Expenses for H1 2024: $22,662 million Total Expenses for H1 2023: $22,181 million Total Expenses Growth Rate = ((Total Expenses for H1 2024 - Total Expenses for H1 2023) / Total Expenses for H1 2023) * 100 Total Expenses Growth Rate for American Express = (($22,662 million - $22,181 million) / $22,181 million) * 100 = 2.17% The total expenses growth rate for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023 is calculated as follows: Total Expenses for H1 2024: $4,038 million Total Expenses for H1 2023: $2,787 million Total Expenses Growth Rate = ((Total Expenses for H1 2024 - Total Expenses for H1 2023) / Total Expenses for H1 2023) * 100 Total Expenses Growth Rate for Discover Financial Services = (($4,038 million - $2,787 million) / $2,787 million) * 100 = 44.87%
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com098
What is the percentage change in total interest expense for American Express and Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023?
The percentage change in total interest expense for American Express for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: ((Total interest expense 2024 - Total interest expense 2023) / Total interest expense 2023) * 100 = (($4,070 million - $3,103 million) / $3,103 million) * 100 = 31.19%. The percentage change in total interest expense for Discover Financial Services for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: ((Total interest expense 2024 - Total interest expense 2023) / Total interest expense 2023) * 100 = (($2,908 million - $2,058 million) / $2,058 million) * 100 = 41.28%.
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com099
What is the trend in comprehensive income for American Express and Discover Financial Services from 2023 to 2024?
American Express saw an increase in comprehensive income from $2,196 million in 2023 to $2,970 million in 2024 for the three months ended June 30. Discover Financial Services experienced an increase in comprehensive income from $666 million in 2023 to $1,525 million in 2024 for the same period.
Comparison
40;4
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 40: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)| | | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:---------------------------|:------|:-------------------------|:----|:-----|:------|:------|:---|:------|:---|:------| | 1 | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | | | | | | | 2 | (Millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Net income | $ | 3,015 | | | $ | 2,174 | | $ | 5,452 | $ | 3,990 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | | 5 | Net unrealized debt securities gains (losses), net of tax | | | | 1 | | | | | 20 | | | | 6 | Foreign currency translation adjustments, net of hedges and tax | (49) | | | 25 | | | (136) | | 53 | | | | 7 | Net unrealized pension and other postretirement benefits, net of tax | 1 | | | (4) | | | 4 | | 53 | | | | 8 | Other comprehensive income (loss) | (45) | | | 22 | | | (128) | | 126 | | | | 9 | Comprehensive income | $ | 2,970 | | | $ | 2,196 | | $ | 5,324 | $ | 4,116 | See Notes to Consolidated Financial Statements. 40 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 4: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Comprehensive Income (unaudited) (dollars in millions) | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:----|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 4 | Other comprehensive loss, net of tax | | | | | | | | | | | | | 5 | Unrealized losses on available-for-sale investment securities, net of tax | (14) | | | (151) | | | (111) | | (59) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 9 | | | (84) | | | (62) | | (72) | | | | 8 | Other comprehensive loss | (5) | | | (235) | | | (173) | | (131) | | | | 9 | Comprehensive income | $ | 1,525 | | | $ | 666 | | $ | 1,665 | $ | 1,738 | See Notes to the Condensed Consolidated Financial Statements. 4
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)| | | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:---------------------------|:------|:-------------------------|:----|:-----|:------|:------|:---|:------|:---|:------| | 1 | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | | | | | | | 2 | (Millions) | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Net income | $ | 3,015 | | | $ | 2,174 | | $ | 5,452 | $ | 3,990 | | 4 | Other comprehensive income (loss): | | | | | | | | | | | | | 5 | Net unrealized debt securities gains (losses), net of tax | | | | 1 | | | | | 20 | | | | 6 | Foreign currency translation adjustments, net of hedges and tax | (49) | | | 25 | | | (136) | | 53 | | | | 7 | Net unrealized pension and other postretirement benefits, net of tax | 1 | | | (4) | | | 4 | | 53 | | | | 8 | Other comprehensive income (loss) | (45) | | | 22 | | | (128) | | 126 | | | | 9 | Comprehensive income | $ | 2,970 | | | $ | 2,196 | | $ | 5,324 | $ | 4,116 | See Notes to Consolidated Financial Statements. 40 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Comprehensive Income (unaudited) (dollars in millions) | | | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:----|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 4 | Other comprehensive loss, net of tax | | | | | | | | | | | | | 5 | Unrealized losses on available-for-sale investment securities, net of tax | (14) | | | (151) | | | (111) | | (59) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 9 | | | (84) | | | (62) | | (72) | | | | 8 | Other comprehensive loss | (5) | | | (235) | | | (173) | | (131) | | | | 9 | Comprehensive income | $ | 1,525 | | | $ | 666 | | $ | 1,665 | $ | 1,738 | See Notes to the Condensed Consolidated Financial Statements. 4
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 40: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="9">Six Months EndedJune 30,</td></tr><tr><td colspan="3">(Millions)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td><td colspan="3"></td><td colspan="2">53 </td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">53 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(45)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(128)</td><td></td><td colspan="3"></td><td colspan="2">126 </td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>2,970 </td><td></td><td colspan="3"></td><td>$</td><td>2,196 </td><td></td><td colspan="3"></td><td>$</td><td>5,324 </td><td></td><td colspan="3"></td><td>$</td><td>4,116 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 40 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 4: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Comprehensive Income (unaudited) (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss, net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized losses on available-for-sale investment securities, net of tax</td><td colspan="2">(14)</td><td></td><td colspan="3"></td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(111)</td><td></td><td colspan="3"></td><td colspan="2">(59)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">(84)</td><td></td><td colspan="3"></td><td colspan="2">(62)</td><td></td><td colspan="3"></td><td colspan="2">(72)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td><td colspan="3"></td><td colspan="2">(173)</td><td></td><td colspan="3"></td><td colspan="2">(131)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>1,525 </td><td></td><td colspan="3"></td><td>$</td><td>666 </td><td></td><td colspan="3"></td><td>$</td><td>1,665 </td><td></td><td colspan="3"></td><td>$</td><td>1,738 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 4
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="9">Six Months EndedJune 30,</td></tr><tr><td colspan="3">(Millions)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>3,015 </td><td></td><td colspan="3"></td><td>$</td><td>2,174 </td><td></td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="3"></td><td colspan="2">(136)</td><td></td><td colspan="3"></td><td colspan="2">53 </td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">4 </td><td></td><td colspan="3"></td><td colspan="2">53 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(45)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(128)</td><td></td><td colspan="3"></td><td colspan="2">126 </td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>2,970 </td><td></td><td colspan="3"></td><td>$</td><td>2,196 </td><td></td><td colspan="3"></td><td>$</td><td>5,324 </td><td></td><td colspan="3"></td><td>$</td><td>4,116 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 40 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Comprehensive Income (unaudited) (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss, net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized losses on available-for-sale investment securities, net of tax</td><td colspan="2">(14)</td><td></td><td colspan="3"></td><td colspan="2">(151)</td><td></td><td colspan="3"></td><td colspan="2">(111)</td><td></td><td colspan="3"></td><td colspan="2">(59)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">(84)</td><td></td><td colspan="3"></td><td colspan="2">(62)</td><td></td><td colspan="3"></td><td colspan="2">(72)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">(235)</td><td></td><td colspan="3"></td><td colspan="2">(173)</td><td></td><td colspan="3"></td><td colspan="2">(131)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>1,525 </td><td></td><td colspan="3"></td><td>$</td><td>666 </td><td></td><td colspan="3"></td><td>$</td><td>1,665 </td><td></td><td colspan="3"></td><td>$</td><td>1,738 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 4
q_com100
How do the total revenues net of interest expense after provisions for credit losses compare for American Express and Discover Financial Services for the six months ended June 30, 2024?
For the six months ended June 30, 2024, American Express reported total revenues net of interest expense after provisions for credit losses of $29,597 million. Discover Financial Services reported $4,775 million for the same period.
Comparison
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0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com101
How does the growth rate of discount revenue compare between American Express and Discover Financial Services in 2024?
For American Express, discount revenue increased from $16,428 million in the first six months of 2023 to $17,235 million in the same period of 2024, showing a growth rate of approximately 4.9%. For Discover Financial Services, discount and interchange revenue increased from $700 million in the first six months of 2023 to $808 million in the same period of 2024, showing a growth rate of approximately 15.4%.
Comparison
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0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com102
What is the earnings per common share for American Express and Discover Financial Services for the first six months of 2024?
American Express reported basic earnings per common share of $7.49 and diluted earnings per common share of $7.48 for the first six months of 2024. Discover Financial Services reported basic earnings per common share of $7.17 and diluted earnings per common share of $7.16 for the same period.
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com103
What is the total revenue net of interest expense for American Express and Discover Financial Services for the first six months of 2024?
American Express reported total revenue net of interest expense of $32,134 million for the first six months of 2024. Discover Financial Services reported total revenue net of interest expense of $7,011 million for the same period.
Comparison
39;3
0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com104
How do the card member rewards expenses of American Express compare to the employee compensation and benefits expenses of Discover Financial Services for the first six months of 2024?
American Express reported card member rewards expenses of $8,001 million for the first six months of 2024. Discover Financial Services reported employee compensation and benefits expenses of $1,329 million for the same period.
Comparison
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0000004962-24-000052;0001393612-24-000047
ITEM 1. FINANCIAL STATEMENTS;Item 1. Financial Statements
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)| | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:---|:-------| | 1 | Six Months Ended June 30 (Millions, except per share amounts) | 2024 | | 2023 | | | | | 2 | Revenues | | | | | | | | 3 | Non-interest revenues | | | | | | | | 4 | Discount revenue | $ | 17,235 | | | $ | 16,428 | | 5 | Net card fees | 4,034 | | | 3,502 | | | | 6 | Service fees and other revenue | 2,572 | | | 2,450 | | | | 7 | Processed revenue | 794 | | | 867 | | | | 8 | Total non-interest revenues | 24,635 | | | 23,247 | | | | 9 | Interest income | | | | | | | | 10 | Interest on loans | 10,150 | | | 8,152 | | | | 11 | Interest and dividends on investment securities | 50 | | | 64 | | | | 12 | Deposits with banks and other | 1,369 | | | 975 | | | | 13 | Total interest income | 11,569 | | | 9,191 | | | | 14 | Interest expense | | | | | | | | 15 | Deposits | 2,852 | | | 2,190 | | | | 16 | Long-term debt and other | 1,218 | | | 913 | | | | 17 | Total interest expense | 4,070 | | | 3,103 | | | | 18 | Net interest income | 7,499 | | | 6,088 | | | | 19 | Total revenues net of interest expense | 32,134 | | | 29,335 | | | | 20 | Provisions for credit losses | | | | | | | | 21 | Card Member receivables | 422 | | | 452 | | | | 22 | Card Member loans | 1,984 | | | 1,709 | | | | 23 | Other | 131 | | | 92 | | | | 24 | Total provisions for credit losses | 2,537 | | | 2,253 | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 29,597 | | | 27,082 | | | | 26 | Expenses | | | | | | | | 27 | Card Member rewards | 8,001 | | | 7,722 | | | | 28 | Business development | 2,819 | | | 2,781 | | | | 29 | Card Member services | 2,325 | | | 1,932 | | | | 30 | Marketing | 2,956 | | | 2,749 | | | | 31 | Salaries and employee benefits | 4,047 | | | 3,889 | | | | 32 | Other, net | 2,514 | | | 3,108 | | | | 33 | Total expenses | 22,662 | | | 22,181 | | | | 34 | Pretax income | 6,935 | | | 4,901 | | | | 35 | Income tax provision | 1,483 | | | 911 | | | | 36 | Net income | $ | 5,452 | | | $ | 3,990 | | 37 | Earnings per Common Share (Note 14)(a) | | | | | | | | 38 | Basic | $ | 7.49 | | | $ | 5.30 | | 39 | Diluted | $ | 7.48 | | | $ | 5.29 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | 41 | Basic | | | | 741 | | | | 42 | Diluted | | | | 742 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) | | | | | | | | | | | | | | |---:|:------------------------------------------------------|:------------------------------------|:------|:----------------------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 1 | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | | | | | | | 2 | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 3 | Interest income | | | | | | | | | | | | | 4 | Credit card loans | $ | 3,959 | | | $ | 3,466 | | $ | 7,897 | $ | 6,787 | | 5 | Other loans, including loans held-for-sale | 729 | | | 606 | | | 1,441 | | 1,170 | | | | 6 | Investment securities | 125 | | | 106 | | | 249 | | 207 | | | | 7 | Other interest income | 158 | | | 112 | | | 332 | | 203 | | | | 8 | Total interest income | 4,971 | | | 4,290 | | | 9,919 | | 8,367 | | | | 9 | Interest expense | | | | | | | | | | | | | 10 | Deposits | 1,199 | | | 905 | | | 2,409 | | 1,661 | | | | 11 | Short-term borrowings | - | | | - | | | 6 | | - | | | | 12 | Long-term borrowings | 248 | | | 208 | | | 493 | | 397 | | | | 13 | Total interest expense | 1,447 | | | 1,113 | | | 2,908 | | 2,058 | | | | 14 | Net interest income | 3,524 | | | 3,177 | | | 7,011 | | 6,309 | | | | 15 | Provision for credit losses | 739 | | | 1,305 | | | 2,236 | | 2,407 | | | | 16 | Net interest income after provision for credit losses | 2,785 | | | 1,872 | | | 4,775 | | 3,902 | | | | 17 | Other income | | | | | | | | | | | | | 18 | Discount and interchange revenue, net | 437 | | | 370 | | | 808 | | 700 | | | | 19 | Protection products revenue | 42 | | | 44 | | | 84 | | 87 | | | | 20 | Loan fee income | 205 | | | 186 | | | 405 | | 352 | | | | 21 | Transaction processing revenue | 91 | | | 72 | | | 178 | | 139 | | | | 22 | Gains (losses) on equity investments | - | | | 1 | | | - | | (17) | | | | 23 | Other income | 239 | | | 28 | | | 262 | | 50 | | | | 24 | Total other income | 1,014 | | | 701 | | | 1,737 | | 1,311 | | | | 25 | Other expense | | | | | | | | | | | | | 26 | Employee compensation and benefits | 658 | | | 588 | | | 1,329 | | 1,213 | | | | 27 | Marketing and business development | 258 | | | 268 | | | 508 | | 509 | | | | 28 | Information processing and communications | 167 | | | 150 | | | 330 | | 289 | | | | 29 | Professional fees | 296 | | | 216 | | | 588 | | 448 | | | | 30 | Premises and equipment | 23 | | | 20 | | | 43 | | 42 | | | | 31 | Other expense | 327 | | | 162 | | | 1,240 | | 286 | | | | 32 | Total other expense | 1,729 | | | 1,404 | | | 4,038 | | 2,787 | | | | 33 | Income before income taxes | 2,070 | | | 1,169 | | | 2,474 | | 2,426 | | | | 34 | Income tax expense | 540 | | | 268 | | | 636 | | 557 | | | | 35 | Net income | $ | 1,530 | | | $ | 901 | | $ | 1,838 | $ | 1,869 | | 36 | Net income allocated to common stockholders | $ | 1,521 | | | $ | 895 | | $ | 1,795 | $ | 1,826 | | 37 | Basic earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.17 | $ | 7.09 | | 38 | Diluted earnings per common share | $ | 6.06 | | | $ | 3.54 | | $ | 7.16 | $ | 7.09 | See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS CO 10-Q form for quarterly period ended 2024-06-30, page 39: AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , Discover Financial Services 10-Q form for quarterly period ended 2024-06-30, page 3: DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
AMERICAN EXPRESS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Six Months Ended June 30 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>17,235 </td><td></td><td colspan="3"></td><td>$</td><td>16,428 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">4,034 </td><td></td><td colspan="3"></td><td colspan="2">3,502 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">2,572 </td><td></td><td colspan="3"></td><td colspan="2">2,450 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">794 </td><td></td><td colspan="3"></td><td colspan="2">867 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">24,635 </td><td></td><td colspan="3"></td><td colspan="2">23,247 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">10,150 </td><td></td><td colspan="3"></td><td colspan="2">8,152 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">1,369 </td><td></td><td colspan="3"></td><td colspan="2">975 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">11,569 </td><td></td><td colspan="3"></td><td colspan="2">9,191 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">2,852 </td><td></td><td colspan="3"></td><td colspan="2">2,190 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">913 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">4,070 </td><td></td><td colspan="3"></td><td colspan="2">3,103 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">7,499 </td><td></td><td colspan="3"></td><td colspan="2">6,088 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">32,134 </td><td></td><td colspan="3"></td><td colspan="2">29,335 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">422 </td><td></td><td colspan="3"></td><td colspan="2">452 </td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,709 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">131 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">2,537 </td><td></td><td colspan="3"></td><td colspan="2">2,253 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">29,597 </td><td></td><td colspan="3"></td><td colspan="2">27,082 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">8,001 </td><td></td><td colspan="3"></td><td colspan="2">7,722 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">2,819 </td><td></td><td colspan="3"></td><td colspan="2">2,781 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">2,325 </td><td></td><td colspan="3"></td><td colspan="2">1,932 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">2,956 </td><td></td><td colspan="3"></td><td colspan="2">2,749 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">4,047 </td><td></td><td colspan="3"></td><td colspan="2">3,889 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">2,514 </td><td></td><td colspan="3"></td><td colspan="2">3,108 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">22,662 </td><td></td><td colspan="3"></td><td colspan="2">22,181 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">6,935 </td><td></td><td colspan="3"></td><td colspan="2">4,901 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">1,483 </td><td></td><td colspan="3"></td><td colspan="2">911 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>5,452 </td><td></td><td colspan="3"></td><td>$</td><td>3,990 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share (Note 14)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>7.49 </td><td></td><td colspan="3"></td><td>$</td><td>5.30 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>7.48 </td><td></td><td colspan="3"></td><td>$</td><td>5.29 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">741 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">742 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $41 million and $31 million for the six months ended June 30, 2024 and 2023, respectively, and (ii) dividends on preferred shares of $29 million for both the six months ended June 30, 2024 and 2023. See Notes to Consolidated Financial Statements. 39 , DISCOVER FINANCIAL SERVICES Condensed Consolidated Statements of Income (unaudited) (dollars in millions, except for share amounts) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9">For the Three Months Ended June 30,</td><td colspan="3"></td><td colspan="9">For the Six Months Ended June 30,</td></tr><tr><td colspan="3"> </td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>3,959 </td><td></td><td colspan="3"></td><td>$</td><td>3,466 </td><td></td><td colspan="3"></td><td>$</td><td>7,897 </td><td></td><td colspan="3"></td><td>$</td><td>6,787 </td><td></td></tr><tr><td colspan="3">Other loans, including loans held-for-sale</td><td colspan="2">729 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">1,441 </td><td></td><td colspan="3"></td><td colspan="2">1,170 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">106 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">207 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">112 </td><td></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">203 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">4,971 </td><td></td><td colspan="3"></td><td colspan="2">4,290 </td><td></td><td colspan="3"></td><td colspan="2">9,919 </td><td></td><td colspan="3"></td><td colspan="2">8,367 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">1,199 </td><td></td><td colspan="3"></td><td colspan="2">905 </td><td></td><td colspan="3"></td><td colspan="2">2,409 </td><td></td><td colspan="3"></td><td colspan="2">1,661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">248 </td><td></td><td colspan="3"></td><td colspan="2">208 </td><td></td><td colspan="3"></td><td colspan="2">493 </td><td></td><td colspan="3"></td><td colspan="2">397 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,113 </td><td></td><td colspan="3"></td><td colspan="2">2,908 </td><td></td><td colspan="3"></td><td colspan="2">2,058 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">3,524 </td><td></td><td colspan="3"></td><td colspan="2">3,177 </td><td></td><td colspan="3"></td><td colspan="2">7,011 </td><td></td><td colspan="3"></td><td colspan="2">6,309 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,305 </td><td></td><td colspan="3"></td><td colspan="2">2,236 </td><td></td><td colspan="3"></td><td colspan="2">2,407 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">2,785 </td><td></td><td colspan="3"></td><td colspan="2">1,872 </td><td></td><td colspan="3"></td><td colspan="2">4,775 </td><td></td><td colspan="3"></td><td colspan="2">3,902 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">437 </td><td></td><td colspan="3"></td><td colspan="2">370 </td><td></td><td colspan="3"></td><td colspan="2">808 </td><td></td><td colspan="3"></td><td colspan="2">700 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">42 </td><td></td><td colspan="3"></td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">84 </td><td></td><td colspan="3"></td><td colspan="2">87 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">205 </td><td></td><td colspan="3"></td><td colspan="2">186 </td><td></td><td colspan="3"></td><td colspan="2">405 </td><td></td><td colspan="3"></td><td colspan="2">352 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">91 </td><td></td><td colspan="3"></td><td colspan="2">72 </td><td></td><td colspan="3"></td><td colspan="2">178 </td><td></td><td colspan="3"></td><td colspan="2">139 </td><td></td></tr><tr><td colspan="3">Gains (losses) on equity investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(17)</td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">239 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">1,014 </td><td></td><td colspan="3"></td><td colspan="2">701 </td><td></td><td colspan="3"></td><td colspan="2">1,737 </td><td></td><td colspan="3"></td><td colspan="2">1,311 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">658 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">1,329 </td><td></td><td colspan="3"></td><td colspan="2">1,213 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">258 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">508 </td><td></td><td colspan="3"></td><td colspan="2">509 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">167 </td><td></td><td colspan="3"></td><td colspan="2">150 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td><td colspan="3"></td><td colspan="2">289 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">296 </td><td></td><td colspan="3"></td><td colspan="2">216 </td><td></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">448 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">20 </td><td></td><td colspan="3"></td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">42 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">327 </td><td></td><td colspan="3"></td><td colspan="2">162 </td><td></td><td colspan="3"></td><td colspan="2">1,240 </td><td></td><td colspan="3"></td><td colspan="2">286 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">1,729 </td><td></td><td colspan="3"></td><td colspan="2">1,404 </td><td></td><td colspan="3"></td><td colspan="2">4,038 </td><td></td><td colspan="3"></td><td colspan="2">2,787 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">2,070 </td><td></td><td colspan="3"></td><td colspan="2">1,169 </td><td></td><td colspan="3"></td><td colspan="2">2,474 </td><td></td><td colspan="3"></td><td colspan="2">2,426 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">636 </td><td></td><td colspan="3"></td><td colspan="2">557 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>1,530 </td><td></td><td colspan="3"></td><td>$</td><td>901 </td><td></td><td colspan="3"></td><td>$</td><td>1,838 </td><td></td><td colspan="3"></td><td>$</td><td>1,869 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>1,521 </td><td></td><td colspan="3"></td><td>$</td><td>895 </td><td></td><td colspan="3"></td><td>$</td><td>1,795 </td><td></td><td colspan="3"></td><td>$</td><td>1,826 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.17 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>6.06 </td><td></td><td colspan="3"></td><td>$</td><td>3.54 </td><td></td><td colspan="3"></td><td>$</td><td>7.16 </td><td></td><td colspan="3"></td><td>$</td><td>7.09 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Condensed Consolidated Financial Statements. 3
q_com105
What is the growth rate of revenue for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The revenue growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Revenue in 2024: $25,818 million Revenue in 2023: $26,258 million Revenue Growth Rate = (Revenue in 2024 - Revenue in 2023) / Revenue in 2023 * 100 Revenue Growth Rate for Bank of America = ($25,818 million - $26,258 million) / $26,258 million * 100 = -1.68% The revenue growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Revenue in 2024: $41,934 million Revenue in 2023: $38,349 million Revenue Growth Rate = (Revenue in 2024 - Revenue in 2023) / Revenue in 2023 * 100 Revenue Growth Rate for JPMorgan Chase = ($41,934 million - $38,349 million) / $38,349 million * 100 = 9.36%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com106
How much did costs grow for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The cost growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Total Noninterest Expense in 2024: $17,237 million Total Noninterest Expense in 2023: $16,238 million Cost Growth Rate = (Total Noninterest Expense in 2024 - Total Noninterest Expense in 2023) / Total Noninterest Expense in 2023 * 100 Cost Growth Rate for Bank of America = ($17,237 million - $16,238 million) / $16,238 million * 100 = 6.15% The cost growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Total Noninterest Expense in 2024: $22,757 million Total Noninterest Expense in 2023: $20,107 million Cost Growth Rate = (Total Noninterest Expense in 2024 - Total Noninterest Expense in 2023) / Total Noninterest Expense in 2023 * 100 Cost Growth Rate for JPMorgan Chase = ($22,757 million - $20,107 million) / $20,107 million * 100 = 13.17%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com107
What was the asset turnover ratio for Bank of America and JPMorgan Chase for the three months ended March 31, 2024?
The asset turnover ratio for Bank of America for the three months ended March 31, 2024, is calculated as follows: Net Sales: $25,818 million Average Total Assets: ($3,273,803 million + $3,180,151 million) / 2 = $3,226,977 million Asset Turnover Ratio = Net Sales / Average Total Assets Asset Turnover Ratio for Bank of America = $25,818 million / $3,226,977 million = 0.008 The asset turnover ratio for JPMorgan Chase for the three months ended March 31, 2024, is calculated as follows: Net Sales: $41,934 million Average Total Assets: ($4,090,727 million + $3,875,393 million) / 2 = $3,983,060 million Asset Turnover Ratio = Net Sales / Average Total Assets Asset Turnover Ratio for JPMorgan Chase = $41,934 million / $3,983,060 million = 0.011
Comparison
44;85
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 44: Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:----------------|:----------|:-------|:----------|:-------| | 2 | Consolidated Balance Sheet | | | | | | | | | 4 | | March 312024 | | December 312023 | | | | | | 5 | (Dollars in millions) | | | | | | | | | 6 | Assets | | | | | | | | | 7 | Cash and due from banks | $ | 23,550 | | | $ | 27,892 | | | 8 | Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 289,854 | | | 305,181 | | | | | 9 | Cash and cash equivalents | 313,404 | | | 333,073 | | | | | 10 | Time deposits placed and other short-term investments | 7,859 | | | 8,346 | | | | | 11 | Federal funds sold and securities borrowed or purchased under agreements to resell (includes $158,281 and $133,053 measured at fair value) | 316,093 | | | 280,624 | | | | | 12 | Trading account assets (includes $154,424 and $130,815 pledged as collateral) | 318,364 | | | 277,354 | | | | | 13 | Derivative assets | 36,236 | | | 39,323 | | | | | 14 | Debt securities: | | | | | | | | | 15 | Carried at fair value | 323,119 | | | 276,852 | | | | | 16 | Held-to-maturity, at cost (fair value $477,748 and $496,597) | 586,863 | | | 594,555 | | | | | 17 | Total debt securities | 909,982 | | | 871,407 | | | | | 18 | Loans and leases (includes $2,938 and $3,569 measured at fair value) | 1,049,156 | | | 1,053,732 | | | | | 19 | Allowance for loan and lease losses | (13,213) | | | (13,342) | | | | | 20 | Loans and leases, net of allowance | 1,035,943 | | | 1,040,390 | | | | | 21 | Premises and equipment, net | 11,901 | | | 11,855 | | | | | 22 | Goodwill | 69,021 | | | 69,021 | | | | | 23 | Loans held-for-sale (includes $2,070 and $2,059 measured at fair value) | 8,571 | | | 6,002 | | | | | 24 | Customer and other receivables | 86,106 | | | 81,881 | | | | | 25 | Other assets (includes $13,935 and $11,861 measured at fair value) | 160,323 | | | 160,875 | | | | | 26 | Total assets | $ | 3,273,803 | | | $ | 3,180,151 | | | 28 | Liabilities | | | | | | | | | 29 | Deposits in U.S. offices: | | | | | | | | | 30 | Noninterest-bearing | $ | 524,982 | | | $ | 530,619 | | | 31 | Interest-bearing (includes $341 and $284 measured at fair value) | 1,304,508 | | | 1,273,904 | | | | | 32 | Deposits in non-U.S. offices: | | | | | | | | | 33 | Noninterest-bearing | 16,502 | | | 16,427 | | | | | 34 | Interest-bearing | 100,504 | | | 102,877 | | | | | 35 | Total deposits | 1,946,496 | | | 1,923,827 | | | | | 36 | Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $206,867 and $178,609 measured at fair value) | 329,658 | | | 283,887 | | | | | 37 | Trading account liabilities | 114,326 | | | 95,530 | | | | | 38 | Derivative liabilities | 40,401 | | | 43,432 | | | | | 39 | Short-term borrowings (includes $6,611 and $4,690 measured at fair value) | 38,895 | | | 32,098 | | | | | 40 | Accrued expenses and other liabilities (includes $14,605 and $11,473 measured at fair value and $1,158 and $1,209 of reserve for unfunded lending commitments) | 214,129 | | | 207,527 | | | | | 41 | Long-term debt (includes $43,975 and $42,809 measured at fair value) | 296,346 | | | 302,204 | | | | | 42 | Total liabilities | 2,980,251 | | | 2,888,505 | | | | | 43 | Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | | | | | | | | | 44 | Shareholders' equity | | | | | | | | | 45 | Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,088,099 and 4,088,099 shares | 28,397 | | | 28,397 | | | | | 46 | Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,866,868,200 and 7,895,457,665 shares | 54,310 | | | 56,365 | | | | | 47 | Retained earnings | 228,902 | | | 224,672 | | | | | 48 | Accumulated other comprehensive income (loss) | (18,057) | | | (17,788) | | | | | 50 | Total shareholders' equity | 293,552 | | | 291,646 | | | | | 51 | Total liabilities and shareholders' equity | $ | 3,273,803 | | | $ | 3,180,151 | | | 53 | | Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | | | | | | | | 54 | | Trading account assets | $ | 5,838 | | | $ | 6,054 | | 57 | | Loans and leases | 19,250 | | | 18,276 | | | | 58 | | Allowance for loan and lease losses | (920) | | | (826) | | | | 59 | | Loans and leases, net of allowance | 18,330 | | | 17,450 | | | | 61 | | All other assets | 256 | | | 269 | | | | 62 | | Total assets of consolidated variable interest entities | $ | 24,424 | | | $ | 23,773 | | 63 | | Liabilities of consolidated variable interest entities included in total liabilities above | | | | | | | | 64 | | Short-term borrowings (includes $23 and $23 of non-recourse short-term borrowings) | $ | 3,387 | | | $ | 2,957 | | 65 | | Long-term debt (includes $8,157 and $8,456 of non-recourse debt) | 8,157 | | | 8,456 | | | | 66 | | All other liabilities (includes $18 and $19 of non-recourse liabilities) | 18 | | | 19 | | | | 67 | | Total liabilities of consolidated variable interest entities | $ | 11,562 | | | $ | 11,432 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | Bank of America 44 | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 85: JPMorgan Chase & Co. Consolidated balance sheets (unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------|:---------------|:----------|:------------------|:----------|:---|:----------| | 1 | (in millions, except share data) | March 31, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Cash and due from banks | $ | 22,750 | | | $ | 29,066 | | 4 | Deposits with banks | 539,366 | | | 595,085 | | | | 5 | Federal funds sold and securities purchased under resale agreements (included $324,418 and $259,813 at fair value) | 330,559 | | | 276,152 | | | | 6 | Securities borrowed (included $84,258 and $70,086 at fair value) | 198,336 | | | 200,436 | | | | 7 | Trading assets (included assets pledged of $180,196 and $128,994) | 754,409 | | | 540,607 | | | | 8 | Available-for-sale securities (amortized cost of $239,813 and $205,456; included assets pledged of $10,806 and $9,219) | 236,152 | | | 201,704 | | | | 9 | Held-to-maturity securities | 334,527 | | | 369,848 | | | | 10 | Investment securities, net of allowance for credit losses | 570,679 | | | 571,552 | | | | 11 | Loans (included $39,046 and $38,851 at fair value) | 1,309,616 | | | 1,323,706 | | | | 12 | Allowance for loan losses | (22,351) | | | (22,420) | | | | 13 | Loans, net of allowance for loan losses | 1,287,265 | | | 1,301,286 | | | | 14 | Accrued interest and accounts receivable | 129,823 | | | 107,363 | | | | 15 | Premises and equipment | 30,279 | | | 30,157 | | | | 16 | Goodwill, MSRs and other intangible assets | 64,374 | | | 64,381 | | | | 17 | Other assets (included $15,645 and $12,306 at fair value and assets pledged of $9,811 and $6,764) | 162,887 | | | 159,308 | | | | 18 | Total assets(a) | $ | 4,090,727 | | | $ | 3,875,393 | | 19 | Liabilities | | | | | | | | 20 | Deposits (included $80,578 and $78,384 at fair value) | $ | 2,428,409 | | | $ | 2,400,688 | | 21 | Federal funds purchased and securities loaned or sold under repurchase agreements (included $264,554 and $169,003 at fair value) | 325,670 | | | 216,535 | | | | 22 | Short-term borrowings (included $22,856 and $20,042 at fair value) | 46,268 | | | 44,712 | | | | 23 | Trading liabilities | 228,327 | | | 180,428 | | | | 24 | Accounts payable and other liabilities (included $8,917 and $5,637 at fair value) | 301,469 | | | 290,307 | | | | 25 | Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value) | 28,075 | | | 23,020 | | | | 26 | Long-term debt (included $92,730 and $87,924 at fair value) | 395,872 | | | 391,825 | | | | 27 | Total liabilities(a) | 3,754,090 | | | 3,547,515 | | | | 28 | Commitments and contingencies (refer to Notes 22, 23 and 24) | | | | | | | | 29 | Stockholders' equity | | | | | | | | 30 | Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares) | 29,900 | | | 27,404 | | | | 31 | Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) | 4,105 | | | 4,105 | | | | 32 | Additional paid-in capital | 89,903 | | | 90,128 | | | | 33 | Retained earnings | 342,414 | | | 332,901 | | | | 34 | Accumulated other comprehensive losses | (11,639) | | | (10,443) | | | | 35 | Treasury stock, at cost (1,233,266,016 and 1,228,275,301 shares) | (118,046) | | | (116,217) | | | | 36 | Total stockholders' equity | 336,637 | | | 327,878 | | | | 37 | Total liabilities and stockholders' equity | $ | 4,090,727 | | | $ | 3,875,393 | (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. | | | | | | | | | |---:|:-------------------------------------------------|:---------------|:-------|:------------------|:-------|:---|:-------| | 1 | (in millions) | March 31, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Trading assets | $ | 2,229 | | | $ | 2,170 | | 4 | Loans | 40,059 | | | 37,611 | | | | 5 | All other assets | 648 | | | 591 | | | | 6 | Total assets | $ | 42,936 | | | $ | 40,372 | | 7 | Liabilities | | | | | | | | 8 | Beneficial interests issued by consolidated VIEs | $ | 28,075 | | | $ | 23,020 | | 9 | All other liabilities | 282 | | | 263 | | | | 10 | Total liabilities | $ | 28,357 | | | $ | 23,283 | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 85
Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:----------|:----------------|:----------|:-------|:----------|:-------| | 2 | Consolidated Balance Sheet | | | | | | | | | 4 | | March 312024 | | December 312023 | | | | | | 5 | (Dollars in millions) | | | | | | | | | 6 | Assets | | | | | | | | | 7 | Cash and due from banks | $ | 23,550 | | | $ | 27,892 | | | 8 | Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks | 289,854 | | | 305,181 | | | | | 9 | Cash and cash equivalents | 313,404 | | | 333,073 | | | | | 10 | Time deposits placed and other short-term investments | 7,859 | | | 8,346 | | | | | 11 | Federal funds sold and securities borrowed or purchased under agreements to resell (includes $158,281 and $133,053 measured at fair value) | 316,093 | | | 280,624 | | | | | 12 | Trading account assets (includes $154,424 and $130,815 pledged as collateral) | 318,364 | | | 277,354 | | | | | 13 | Derivative assets | 36,236 | | | 39,323 | | | | | 14 | Debt securities: | | | | | | | | | 15 | Carried at fair value | 323,119 | | | 276,852 | | | | | 16 | Held-to-maturity, at cost (fair value $477,748 and $496,597) | 586,863 | | | 594,555 | | | | | 17 | Total debt securities | 909,982 | | | 871,407 | | | | | 18 | Loans and leases (includes $2,938 and $3,569 measured at fair value) | 1,049,156 | | | 1,053,732 | | | | | 19 | Allowance for loan and lease losses | (13,213) | | | (13,342) | | | | | 20 | Loans and leases, net of allowance | 1,035,943 | | | 1,040,390 | | | | | 21 | Premises and equipment, net | 11,901 | | | 11,855 | | | | | 22 | Goodwill | 69,021 | | | 69,021 | | | | | 23 | Loans held-for-sale (includes $2,070 and $2,059 measured at fair value) | 8,571 | | | 6,002 | | | | | 24 | Customer and other receivables | 86,106 | | | 81,881 | | | | | 25 | Other assets (includes $13,935 and $11,861 measured at fair value) | 160,323 | | | 160,875 | | | | | 26 | Total assets | $ | 3,273,803 | | | $ | 3,180,151 | | | 28 | Liabilities | | | | | | | | | 29 | Deposits in U.S. offices: | | | | | | | | | 30 | Noninterest-bearing | $ | 524,982 | | | $ | 530,619 | | | 31 | Interest-bearing (includes $341 and $284 measured at fair value) | 1,304,508 | | | 1,273,904 | | | | | 32 | Deposits in non-U.S. offices: | | | | | | | | | 33 | Noninterest-bearing | 16,502 | | | 16,427 | | | | | 34 | Interest-bearing | 100,504 | | | 102,877 | | | | | 35 | Total deposits | 1,946,496 | | | 1,923,827 | | | | | 36 | Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $206,867 and $178,609 measured at fair value) | 329,658 | | | 283,887 | | | | | 37 | Trading account liabilities | 114,326 | | | 95,530 | | | | | 38 | Derivative liabilities | 40,401 | | | 43,432 | | | | | 39 | Short-term borrowings (includes $6,611 and $4,690 measured at fair value) | 38,895 | | | 32,098 | | | | | 40 | Accrued expenses and other liabilities (includes $14,605 and $11,473 measured at fair value and $1,158 and $1,209 of reserve for unfunded lending commitments) | 214,129 | | | 207,527 | | | | | 41 | Long-term debt (includes $43,975 and $42,809 measured at fair value) | 296,346 | | | 302,204 | | | | | 42 | Total liabilities | 2,980,251 | | | 2,888,505 | | | | | 43 | Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies) | | | | | | | | | 44 | Shareholders' equity | | | | | | | | | 45 | Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,088,099 and 4,088,099 shares | 28,397 | | | 28,397 | | | | | 46 | Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,866,868,200 and 7,895,457,665 shares | 54,310 | | | 56,365 | | | | | 47 | Retained earnings | 228,902 | | | 224,672 | | | | | 48 | Accumulated other comprehensive income (loss) | (18,057) | | | (17,788) | | | | | 50 | Total shareholders' equity | 293,552 | | | 291,646 | | | | | 51 | Total liabilities and shareholders' equity | $ | 3,273,803 | | | $ | 3,180,151 | | | 53 | | Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities) | | | | | | | | 54 | | Trading account assets | $ | 5,838 | | | $ | 6,054 | | 57 | | Loans and leases | 19,250 | | | 18,276 | | | | 58 | | Allowance for loan and lease losses | (920) | | | (826) | | | | 59 | | Loans and leases, net of allowance | 18,330 | | | 17,450 | | | | 61 | | All other assets | 256 | | | 269 | | | | 62 | | Total assets of consolidated variable interest entities | $ | 24,424 | | | $ | 23,773 | | 63 | | Liabilities of consolidated variable interest entities included in total liabilities above | | | | | | | | 64 | | Short-term borrowings (includes $23 and $23 of non-recourse short-term borrowings) | $ | 3,387 | | | $ | 2,957 | | 65 | | Long-term debt (includes $8,157 and $8,456 of non-recourse debt) | 8,157 | | | 8,456 | | | | 66 | | All other liabilities (includes $18 and $19 of non-recourse liabilities) | 18 | | | 19 | | | | 67 | | Total liabilities of consolidated variable interest entities | $ | 11,562 | | | $ | 11,432 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | Bank of America 44 | , JPMorgan Chase & Co. Consolidated balance sheets (unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------|:---------------|:----------|:------------------|:----------|:---|:----------| | 1 | (in millions, except share data) | March 31, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Cash and due from banks | $ | 22,750 | | | $ | 29,066 | | 4 | Deposits with banks | 539,366 | | | 595,085 | | | | 5 | Federal funds sold and securities purchased under resale agreements (included $324,418 and $259,813 at fair value) | 330,559 | | | 276,152 | | | | 6 | Securities borrowed (included $84,258 and $70,086 at fair value) | 198,336 | | | 200,436 | | | | 7 | Trading assets (included assets pledged of $180,196 and $128,994) | 754,409 | | | 540,607 | | | | 8 | Available-for-sale securities (amortized cost of $239,813 and $205,456; included assets pledged of $10,806 and $9,219) | 236,152 | | | 201,704 | | | | 9 | Held-to-maturity securities | 334,527 | | | 369,848 | | | | 10 | Investment securities, net of allowance for credit losses | 570,679 | | | 571,552 | | | | 11 | Loans (included $39,046 and $38,851 at fair value) | 1,309,616 | | | 1,323,706 | | | | 12 | Allowance for loan losses | (22,351) | | | (22,420) | | | | 13 | Loans, net of allowance for loan losses | 1,287,265 | | | 1,301,286 | | | | 14 | Accrued interest and accounts receivable | 129,823 | | | 107,363 | | | | 15 | Premises and equipment | 30,279 | | | 30,157 | | | | 16 | Goodwill, MSRs and other intangible assets | 64,374 | | | 64,381 | | | | 17 | Other assets (included $15,645 and $12,306 at fair value and assets pledged of $9,811 and $6,764) | 162,887 | | | 159,308 | | | | 18 | Total assets(a) | $ | 4,090,727 | | | $ | 3,875,393 | | 19 | Liabilities | | | | | | | | 20 | Deposits (included $80,578 and $78,384 at fair value) | $ | 2,428,409 | | | $ | 2,400,688 | | 21 | Federal funds purchased and securities loaned or sold under repurchase agreements (included $264,554 and $169,003 at fair value) | 325,670 | | | 216,535 | | | | 22 | Short-term borrowings (included $22,856 and $20,042 at fair value) | 46,268 | | | 44,712 | | | | 23 | Trading liabilities | 228,327 | | | 180,428 | | | | 24 | Accounts payable and other liabilities (included $8,917 and $5,637 at fair value) | 301,469 | | | 290,307 | | | | 25 | Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value) | 28,075 | | | 23,020 | | | | 26 | Long-term debt (included $92,730 and $87,924 at fair value) | 395,872 | | | 391,825 | | | | 27 | Total liabilities(a) | 3,754,090 | | | 3,547,515 | | | | 28 | Commitments and contingencies (refer to Notes 22, 23 and 24) | | | | | | | | 29 | Stockholders' equity | | | | | | | | 30 | Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares) | 29,900 | | | 27,404 | | | | 31 | Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) | 4,105 | | | 4,105 | | | | 32 | Additional paid-in capital | 89,903 | | | 90,128 | | | | 33 | Retained earnings | 342,414 | | | 332,901 | | | | 34 | Accumulated other comprehensive losses | (11,639) | | | (10,443) | | | | 35 | Treasury stock, at cost (1,233,266,016 and 1,228,275,301 shares) | (118,046) | | | (116,217) | | | | 36 | Total stockholders' equity | 336,637 | | | 327,878 | | | | 37 | Total liabilities and stockholders' equity | $ | 4,090,727 | | | $ | 3,875,393 | (a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. | | | | | | | | | |---:|:-------------------------------------------------|:---------------|:-------|:------------------|:-------|:---|:-------| | 1 | (in millions) | March 31, 2024 | | December 31, 2023 | | | | | 2 | Assets | | | | | | | | 3 | Trading assets | $ | 2,229 | | | $ | 2,170 | | 4 | Loans | 40,059 | | | 37,611 | | | | 5 | All other assets | 648 | | | 591 | | | | 6 | Total assets | $ | 42,936 | | | $ | 40,372 | | 7 | Liabilities | | | | | | | | 8 | Beneficial interests issued by consolidated VIEs | $ | 28,075 | | | $ | 23,020 | | 9 | All other liabilities | 282 | | | 263 | | | | 10 | Total liabilities | $ | 28,357 | | | $ | 23,283 | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 85
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 44: Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">Consolidated Balance Sheet</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6"></td><td colspan="3" rowspan="2">March 312024</td><td colspan="3"></td><td colspan="3" rowspan="2">December 312023</td></tr><tr><td colspan="6">(Dollars in millions)</td><td colspan="3"></td></tr><tr><td colspan="6">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Cash and due from banks</td><td>$</td><td>23,550 </td><td></td><td colspan="3"></td><td>$</td><td>27,892 </td><td></td></tr><tr><td colspan="6">Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks</td><td colspan="2">289,854 </td><td></td><td colspan="3"></td><td colspan="2">305,181 </td><td></td></tr><tr><td colspan="6">Cash and cash equivalents</td><td colspan="2">313,404 </td><td></td><td colspan="3"></td><td colspan="2">333,073 </td><td></td></tr><tr><td colspan="6">Time deposits placed and other short-term investments</td><td colspan="2">7,859 </td><td></td><td colspan="3"></td><td colspan="2">8,346 </td><td></td></tr><tr><td colspan="6">Federal funds sold and securities borrowed or purchased under agreements to resell (includes $158,281 and $133,053 measured at fair value)</td><td colspan="2">316,093 </td><td></td><td colspan="3"></td><td colspan="2">280,624 </td><td></td></tr><tr><td colspan="6">Trading account assets (includes $154,424 and $130,815 pledged as collateral)</td><td colspan="2">318,364 </td><td></td><td colspan="3"></td><td colspan="2">277,354 </td><td></td></tr><tr><td colspan="6">Derivative assets</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">39,323 </td><td></td></tr><tr><td colspan="6">Debt securities:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Carried at fair value</td><td colspan="2">323,119 </td><td></td><td colspan="3"></td><td colspan="2">276,852 </td><td></td></tr><tr><td colspan="6">Held-to-maturity, at cost (fair value $477,748 and $496,597)</td><td colspan="2">586,863 </td><td></td><td colspan="3"></td><td colspan="2">594,555 </td><td></td></tr><tr><td colspan="6">Total debt securities</td><td colspan="2">909,982 </td><td></td><td colspan="3"></td><td colspan="2">871,407 </td><td></td></tr><tr><td colspan="6">Loans and leases (includes $2,938 and $3,569 measured at fair value)</td><td colspan="2">1,049,156 </td><td></td><td colspan="3"></td><td colspan="2">1,053,732 </td><td></td></tr><tr><td colspan="6">Allowance for loan and lease losses</td><td colspan="2">(13,213)</td><td></td><td colspan="3"></td><td colspan="2">(13,342)</td><td></td></tr><tr><td colspan="6">Loans and leases, net of allowance</td><td colspan="2">1,035,943 </td><td></td><td colspan="3"></td><td colspan="2">1,040,390 </td><td></td></tr><tr><td colspan="6">Premises and equipment, net</td><td colspan="2">11,901 </td><td></td><td colspan="3"></td><td colspan="2">11,855 </td><td></td></tr><tr><td colspan="6">Goodwill</td><td colspan="2">69,021 </td><td></td><td colspan="3"></td><td colspan="2">69,021 </td><td></td></tr><tr><td colspan="6">Loans held-for-sale (includes $2,070 and $2,059 measured at fair value)</td><td colspan="2">8,571 </td><td></td><td colspan="3"></td><td colspan="2">6,002 </td><td></td></tr><tr><td colspan="6">Customer and other receivables</td><td colspan="2">86,106 </td><td></td><td colspan="3"></td><td colspan="2">81,881 </td><td></td></tr><tr><td colspan="6">Other assets (includes $13,935 and $11,861 measured at fair value)</td><td colspan="2">160,323 </td><td></td><td colspan="3"></td><td colspan="2">160,875 </td><td></td></tr><tr><td colspan="6">Total assets</td><td>$</td><td>3,273,803 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Liabilities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Deposits in U.S. offices:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Noninterest-bearing</td><td>$</td><td>524,982 </td><td></td><td colspan="3"></td><td>$</td><td>530,619 </td><td></td></tr><tr><td colspan="6">Interest-bearing (includes $341 and $284 measured at fair value)</td><td colspan="2">1,304,508 </td><td></td><td colspan="3"></td><td colspan="2">1,273,904 </td><td></td></tr><tr><td colspan="6">Deposits in non-U.S. offices:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Noninterest-bearing</td><td colspan="2">16,502 </td><td></td><td colspan="3"></td><td colspan="2">16,427 </td><td></td></tr><tr><td colspan="6">Interest-bearing</td><td colspan="2">100,504 </td><td></td><td colspan="3"></td><td colspan="2">102,877 </td><td></td></tr><tr><td colspan="6">Total deposits</td><td colspan="2">1,946,496 </td><td></td><td colspan="3"></td><td colspan="2">1,923,827 </td><td></td></tr><tr><td colspan="6">Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $206,867 and $178,609 measured at fair value)</td><td colspan="2">329,658 </td><td></td><td colspan="3"></td><td colspan="2">283,887 </td><td></td></tr><tr><td colspan="6">Trading account liabilities</td><td colspan="2">114,326 </td><td></td><td colspan="3"></td><td colspan="2">95,530 </td><td></td></tr><tr><td colspan="6">Derivative liabilities</td><td colspan="2">40,401 </td><td></td><td colspan="3"></td><td colspan="2">43,432 </td><td></td></tr><tr><td colspan="6">Short-term borrowings (includes $6,611 and $4,690 measured at fair value)</td><td colspan="2">38,895 </td><td></td><td colspan="3"></td><td colspan="2">32,098 </td><td></td></tr><tr><td colspan="6">Accrued expenses and other liabilities (includes $14,605 and $11,473 measured at fair value and $1,158 and $1,209 of reserve for unfunded lending commitments)</td><td colspan="2">214,129 </td><td></td><td colspan="3"></td><td colspan="2">207,527 </td><td></td></tr><tr><td colspan="6">Long-term debt (includes $43,975 and $42,809 measured at fair value)</td><td colspan="2">296,346 </td><td></td><td colspan="3"></td><td colspan="2">302,204 </td><td></td></tr><tr><td colspan="6">Total liabilities</td><td colspan="2">2,980,251 </td><td></td><td colspan="3"></td><td colspan="2">2,888,505 </td><td></td></tr><tr><td colspan="6">Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Shareholders' equity</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,088,099 and 4,088,099 shares</td><td colspan="2">28,397 </td><td></td><td colspan="3"></td><td colspan="2">28,397 </td><td></td></tr><tr><td colspan="6">Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,866,868,200 and 7,895,457,665 shares</td><td colspan="2">54,310 </td><td></td><td colspan="3"></td><td colspan="2">56,365 </td><td></td></tr><tr><td colspan="6">Retained earnings</td><td colspan="2">228,902 </td><td></td><td colspan="3"></td><td colspan="2">224,672 </td><td></td></tr><tr><td colspan="6">Accumulated other comprehensive income (loss)</td><td colspan="2">(18,057)</td><td></td><td colspan="3"></td><td colspan="2">(17,788)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Total shareholders' equity</td><td colspan="2">293,552 </td><td></td><td colspan="3"></td><td colspan="2">291,646 </td><td></td></tr><tr><td colspan="6">Total liabilities and shareholders' equity</td><td>$</td><td>3,273,803 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Trading account assets</td><td>$</td><td>5,838 </td><td></td><td colspan="3"></td><td>$</td><td>6,054 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases</td><td colspan="2">19,250 </td><td></td><td colspan="3"></td><td colspan="2">18,276 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Allowance for loan and lease losses</td><td colspan="2">(920)</td><td></td><td colspan="3"></td><td colspan="2">(826)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases, net of allowance</td><td colspan="2">18,330 </td><td></td><td colspan="3"></td><td colspan="2">17,450 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">All other assets</td><td colspan="2">256 </td><td></td><td colspan="3"></td><td colspan="2">269 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total assets of consolidated variable interest entities</td><td>$</td><td>24,424 </td><td></td><td colspan="3"></td><td>$</td><td>23,773 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Liabilities of consolidated variable interest entities included in total liabilities above</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3"></td><td colspan="3">Short-term borrowings (includes $23 and $23 of non-recourse short-term borrowings)</td><td>$</td><td>3,387 </td><td></td><td colspan="3"></td><td>$</td><td>2,957 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Long-term debt (includes $8,157 and $8,456 of non-recourse debt)</td><td colspan="2">8,157 </td><td></td><td colspan="3"></td><td colspan="2">8,456 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">All other liabilities (includes $18 and $19 of non-recourse liabilities)</td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total liabilities of consolidated variable interest entities</td><td>$</td><td>11,562 </td><td></td><td colspan="3"></td><td>$</td><td>11,432 </td><td></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">Bank of America 44</td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 85: JPMorgan Chase & Co. Consolidated balance sheets (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions, except share data)</td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks</td><td>$</td><td>22,750 </td><td></td><td colspan="3"></td><td>$</td><td>29,066 </td><td></td></tr><tr><td colspan="3">Deposits with banks</td><td colspan="2">539,366 </td><td></td><td colspan="3"></td><td colspan="2">595,085 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements (included $324,418 and $259,813 at fair value)</td><td colspan="2">330,559 </td><td></td><td colspan="3"></td><td colspan="2">276,152 </td><td></td></tr><tr><td colspan="3">Securities borrowed (included $84,258 and $70,086 at fair value)</td><td colspan="2">198,336 </td><td></td><td colspan="3"></td><td colspan="2">200,436 </td><td></td></tr><tr><td colspan="3">Trading assets (included assets pledged of $180,196 and $128,994)</td><td colspan="2">754,409 </td><td></td><td colspan="3"></td><td colspan="2">540,607 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities (amortized cost of $239,813 and $205,456; included assets pledged of $10,806 and $9,219)</td><td colspan="2">236,152 </td><td></td><td colspan="3"></td><td colspan="2">201,704 </td><td></td></tr><tr><td colspan="3">Held-to-maturity securities </td><td colspan="2">334,527 </td><td></td><td colspan="3"></td><td colspan="2">369,848 </td><td></td></tr><tr><td colspan="3">Investment securities, net of allowance for credit losses</td><td colspan="2">570,679 </td><td></td><td colspan="3"></td><td colspan="2">571,552 </td><td></td></tr><tr><td colspan="3">Loans (included $39,046 and $38,851 at fair value)</td><td colspan="2">1,309,616 </td><td></td><td colspan="3"></td><td colspan="2">1,323,706 </td><td></td></tr><tr><td colspan="3">Allowance for loan losses</td><td colspan="2">(22,351)</td><td></td><td colspan="3"></td><td colspan="2">(22,420)</td><td></td></tr><tr><td colspan="3">Loans, net of allowance for loan losses</td><td colspan="2">1,287,265 </td><td></td><td colspan="3"></td><td colspan="2">1,301,286 </td><td></td></tr><tr><td colspan="3">Accrued interest and accounts receivable</td><td colspan="2">129,823 </td><td></td><td colspan="3"></td><td colspan="2">107,363 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">30,279 </td><td></td><td colspan="3"></td><td colspan="2">30,157 </td><td></td></tr><tr><td colspan="3">Goodwill, MSRs and other intangible assets</td><td colspan="2">64,374 </td><td></td><td colspan="3"></td><td colspan="2">64,381 </td><td></td></tr><tr><td colspan="3">Other assets (included $15,645 and $12,306 at fair value and assets pledged of $9,811 and $6,764)</td><td colspan="2">162,887 </td><td></td><td colspan="3"></td><td colspan="2">159,308 </td><td></td></tr><tr><td colspan="3">Total assets(a)</td><td>$</td><td>4,090,727 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (included $80,578 and $78,384 at fair value)</td><td>$</td><td>2,428,409 </td><td></td><td colspan="3"></td><td>$</td><td>2,400,688 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities loaned or sold under repurchase agreements (included $264,554 and $169,003 at fair value)</td><td colspan="2">325,670 </td><td></td><td colspan="3"></td><td colspan="2">216,535 </td><td></td></tr><tr><td colspan="3">Short-term borrowings (included $22,856 and $20,042 at fair value)</td><td colspan="2">46,268 </td><td></td><td colspan="3"></td><td colspan="2">44,712 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">228,327 </td><td></td><td colspan="3"></td><td colspan="2">180,428 </td><td></td></tr><tr><td colspan="3">Accounts payable and other liabilities (included $8,917 and $5,637 at fair value)</td><td colspan="2">301,469 </td><td></td><td colspan="3"></td><td colspan="2">290,307 </td><td></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)</td><td colspan="2">28,075 </td><td></td><td colspan="3"></td><td colspan="2">23,020 </td><td></td></tr><tr><td colspan="3">Long-term debt (included $92,730 and $87,924 at fair value)</td><td colspan="2">395,872 </td><td></td><td colspan="3"></td><td colspan="2">391,825 </td><td></td></tr><tr><td colspan="3">Total liabilities(a)</td><td colspan="2">3,754,090 </td><td></td><td colspan="3"></td><td colspan="2">3,547,515 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (refer to Notes 22, 23 and 24)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares) </td><td colspan="2">29,900 </td><td></td><td colspan="3"></td><td colspan="2">27,404 </td><td></td></tr><tr><td colspan="3">Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)</td><td colspan="2">4,105 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">89,903 </td><td></td><td colspan="3"></td><td colspan="2">90,128 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">342,414 </td><td></td><td colspan="3"></td><td colspan="2">332,901 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="2">(11,639)</td><td></td><td colspan="3"></td><td colspan="2">(10,443)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (1,233,266,016 and 1,228,275,301 shares)</td><td colspan="2">(118,046)</td><td></td><td colspan="3"></td><td colspan="2">(116,217)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">336,637 </td><td></td><td colspan="3"></td><td colspan="2">327,878 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>4,090,727 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr></table>(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions)</td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Trading assets</td><td>$</td><td>2,229 </td><td></td><td colspan="3"></td><td>$</td><td>2,170 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">40,059 </td><td></td><td colspan="3"></td><td colspan="2">37,611 </td><td></td></tr><tr><td colspan="3">All other assets</td><td colspan="2">648 </td><td></td><td colspan="3"></td><td colspan="2">591 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>42,936 </td><td></td><td colspan="3"></td><td>$</td><td>40,372 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs</td><td>$</td><td>28,075 </td><td></td><td colspan="3"></td><td>$</td><td>23,020 </td><td></td></tr><tr><td colspan="3">All other liabilities</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">263 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>28,357 </td><td></td><td colspan="3"></td><td>$</td><td>23,283 </td><td></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 85
Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">Consolidated Balance Sheet</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6"></td><td colspan="3" rowspan="2">March 312024</td><td colspan="3"></td><td colspan="3" rowspan="2">December 312023</td></tr><tr><td colspan="6">(Dollars in millions)</td><td colspan="3"></td></tr><tr><td colspan="6">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Cash and due from banks</td><td>$</td><td>23,550 </td><td></td><td colspan="3"></td><td>$</td><td>27,892 </td><td></td></tr><tr><td colspan="6">Interest-bearing deposits with the Federal Reserve, non-U.S. central banks and other banks</td><td colspan="2">289,854 </td><td></td><td colspan="3"></td><td colspan="2">305,181 </td><td></td></tr><tr><td colspan="6">Cash and cash equivalents</td><td colspan="2">313,404 </td><td></td><td colspan="3"></td><td colspan="2">333,073 </td><td></td></tr><tr><td colspan="6">Time deposits placed and other short-term investments</td><td colspan="2">7,859 </td><td></td><td colspan="3"></td><td colspan="2">8,346 </td><td></td></tr><tr><td colspan="6">Federal funds sold and securities borrowed or purchased under agreements to resell (includes $158,281 and $133,053 measured at fair value)</td><td colspan="2">316,093 </td><td></td><td colspan="3"></td><td colspan="2">280,624 </td><td></td></tr><tr><td colspan="6">Trading account assets (includes $154,424 and $130,815 pledged as collateral)</td><td colspan="2">318,364 </td><td></td><td colspan="3"></td><td colspan="2">277,354 </td><td></td></tr><tr><td colspan="6">Derivative assets</td><td colspan="2">36,236 </td><td></td><td colspan="3"></td><td colspan="2">39,323 </td><td></td></tr><tr><td colspan="6">Debt securities:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Carried at fair value</td><td colspan="2">323,119 </td><td></td><td colspan="3"></td><td colspan="2">276,852 </td><td></td></tr><tr><td colspan="6">Held-to-maturity, at cost (fair value $477,748 and $496,597)</td><td colspan="2">586,863 </td><td></td><td colspan="3"></td><td colspan="2">594,555 </td><td></td></tr><tr><td colspan="6">Total debt securities</td><td colspan="2">909,982 </td><td></td><td colspan="3"></td><td colspan="2">871,407 </td><td></td></tr><tr><td colspan="6">Loans and leases (includes $2,938 and $3,569 measured at fair value)</td><td colspan="2">1,049,156 </td><td></td><td colspan="3"></td><td colspan="2">1,053,732 </td><td></td></tr><tr><td colspan="6">Allowance for loan and lease losses</td><td colspan="2">(13,213)</td><td></td><td colspan="3"></td><td colspan="2">(13,342)</td><td></td></tr><tr><td colspan="6">Loans and leases, net of allowance</td><td colspan="2">1,035,943 </td><td></td><td colspan="3"></td><td colspan="2">1,040,390 </td><td></td></tr><tr><td colspan="6">Premises and equipment, net</td><td colspan="2">11,901 </td><td></td><td colspan="3"></td><td colspan="2">11,855 </td><td></td></tr><tr><td colspan="6">Goodwill</td><td colspan="2">69,021 </td><td></td><td colspan="3"></td><td colspan="2">69,021 </td><td></td></tr><tr><td colspan="6">Loans held-for-sale (includes $2,070 and $2,059 measured at fair value)</td><td colspan="2">8,571 </td><td></td><td colspan="3"></td><td colspan="2">6,002 </td><td></td></tr><tr><td colspan="6">Customer and other receivables</td><td colspan="2">86,106 </td><td></td><td colspan="3"></td><td colspan="2">81,881 </td><td></td></tr><tr><td colspan="6">Other assets (includes $13,935 and $11,861 measured at fair value)</td><td colspan="2">160,323 </td><td></td><td colspan="3"></td><td colspan="2">160,875 </td><td></td></tr><tr><td colspan="6">Total assets</td><td>$</td><td>3,273,803 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Liabilities</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Deposits in U.S. offices:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="6">Noninterest-bearing</td><td>$</td><td>524,982 </td><td></td><td colspan="3"></td><td>$</td><td>530,619 </td><td></td></tr><tr><td colspan="6">Interest-bearing (includes $341 and $284 measured at fair value)</td><td colspan="2">1,304,508 </td><td></td><td colspan="3"></td><td colspan="2">1,273,904 </td><td></td></tr><tr><td colspan="6">Deposits in non-U.S. offices:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Noninterest-bearing</td><td colspan="2">16,502 </td><td></td><td colspan="3"></td><td colspan="2">16,427 </td><td></td></tr><tr><td colspan="6">Interest-bearing</td><td colspan="2">100,504 </td><td></td><td colspan="3"></td><td colspan="2">102,877 </td><td></td></tr><tr><td colspan="6">Total deposits</td><td colspan="2">1,946,496 </td><td></td><td colspan="3"></td><td colspan="2">1,923,827 </td><td></td></tr><tr><td colspan="6">Federal funds purchased and securities loaned or sold under agreements to repurchase (includes $206,867 and $178,609 measured at fair value)</td><td colspan="2">329,658 </td><td></td><td colspan="3"></td><td colspan="2">283,887 </td><td></td></tr><tr><td colspan="6">Trading account liabilities</td><td colspan="2">114,326 </td><td></td><td colspan="3"></td><td colspan="2">95,530 </td><td></td></tr><tr><td colspan="6">Derivative liabilities</td><td colspan="2">40,401 </td><td></td><td colspan="3"></td><td colspan="2">43,432 </td><td></td></tr><tr><td colspan="6">Short-term borrowings (includes $6,611 and $4,690 measured at fair value)</td><td colspan="2">38,895 </td><td></td><td colspan="3"></td><td colspan="2">32,098 </td><td></td></tr><tr><td colspan="6">Accrued expenses and other liabilities (includes $14,605 and $11,473 measured at fair value and $1,158 and $1,209 of reserve for unfunded lending commitments)</td><td colspan="2">214,129 </td><td></td><td colspan="3"></td><td colspan="2">207,527 </td><td></td></tr><tr><td colspan="6">Long-term debt (includes $43,975 and $42,809 measured at fair value)</td><td colspan="2">296,346 </td><td></td><td colspan="3"></td><td colspan="2">302,204 </td><td></td></tr><tr><td colspan="6">Total liabilities</td><td colspan="2">2,980,251 </td><td></td><td colspan="3"></td><td colspan="2">2,888,505 </td><td></td></tr><tr><td colspan="6">Commitments and contingencies (Note 6 – Securitizations and Other Variable Interest Entities and Note 10 – Commitments and Contingencies)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Shareholders' equity</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Preferred stock, $0.01 par value; authorized – 100,000,000 shares; issued and outstanding – 4,088,099 and 4,088,099 shares</td><td colspan="2">28,397 </td><td></td><td colspan="3"></td><td colspan="2">28,397 </td><td></td></tr><tr><td colspan="6">Common stock and additional paid-in capital, $0.01 par value; authorized – 12,800,000,000 shares; issued and outstanding – 7,866,868,200 and 7,895,457,665 shares</td><td colspan="2">54,310 </td><td></td><td colspan="3"></td><td colspan="2">56,365 </td><td></td></tr><tr><td colspan="6">Retained earnings</td><td colspan="2">228,902 </td><td></td><td colspan="3"></td><td colspan="2">224,672 </td><td></td></tr><tr><td colspan="6">Accumulated other comprehensive income (loss)</td><td colspan="2">(18,057)</td><td></td><td colspan="3"></td><td colspan="2">(17,788)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">Total shareholders' equity</td><td colspan="2">293,552 </td><td></td><td colspan="3"></td><td colspan="2">291,646 </td><td></td></tr><tr><td colspan="6">Total liabilities and shareholders' equity</td><td>$</td><td>3,273,803 </td><td></td><td colspan="3"></td><td>$</td><td>3,180,151 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Assets of consolidated variable interest entities included in total assets above (isolated to settle the liabilities of the variable interest entities)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Trading account assets</td><td>$</td><td>5,838 </td><td></td><td colspan="3"></td><td>$</td><td>6,054 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases</td><td colspan="2">19,250 </td><td></td><td colspan="3"></td><td colspan="2">18,276 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Allowance for loan and lease losses</td><td colspan="2">(920)</td><td></td><td colspan="3"></td><td colspan="2">(826)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Loans and leases, net of allowance</td><td colspan="2">18,330 </td><td></td><td colspan="3"></td><td colspan="2">17,450 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3">All other assets</td><td colspan="2">256 </td><td></td><td colspan="3"></td><td colspan="2">269 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total assets of consolidated variable interest entities</td><td>$</td><td>24,424 </td><td></td><td colspan="3"></td><td>$</td><td>23,773 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Liabilities of consolidated variable interest entities included in total liabilities above</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td></tr><tr><td colspan="3"></td><td colspan="3">Short-term borrowings (includes $23 and $23 of non-recourse short-term borrowings)</td><td>$</td><td>3,387 </td><td></td><td colspan="3"></td><td>$</td><td>2,957 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Long-term debt (includes $8,157 and $8,456 of non-recourse debt)</td><td colspan="2">8,157 </td><td></td><td colspan="3"></td><td colspan="2">8,456 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">All other liabilities (includes $18 and $19 of non-recourse liabilities)</td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">19 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3">Total liabilities of consolidated variable interest entities</td><td>$</td><td>11,562 </td><td></td><td colspan="3"></td><td>$</td><td>11,432 </td><td></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">Bank of America 44</td></tr></table> , JPMorgan Chase & Co. Consolidated balance sheets (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions, except share data)</td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks</td><td>$</td><td>22,750 </td><td></td><td colspan="3"></td><td>$</td><td>29,066 </td><td></td></tr><tr><td colspan="3">Deposits with banks</td><td colspan="2">539,366 </td><td></td><td colspan="3"></td><td colspan="2">595,085 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements (included $324,418 and $259,813 at fair value)</td><td colspan="2">330,559 </td><td></td><td colspan="3"></td><td colspan="2">276,152 </td><td></td></tr><tr><td colspan="3">Securities borrowed (included $84,258 and $70,086 at fair value)</td><td colspan="2">198,336 </td><td></td><td colspan="3"></td><td colspan="2">200,436 </td><td></td></tr><tr><td colspan="3">Trading assets (included assets pledged of $180,196 and $128,994)</td><td colspan="2">754,409 </td><td></td><td colspan="3"></td><td colspan="2">540,607 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities (amortized cost of $239,813 and $205,456; included assets pledged of $10,806 and $9,219)</td><td colspan="2">236,152 </td><td></td><td colspan="3"></td><td colspan="2">201,704 </td><td></td></tr><tr><td colspan="3">Held-to-maturity securities </td><td colspan="2">334,527 </td><td></td><td colspan="3"></td><td colspan="2">369,848 </td><td></td></tr><tr><td colspan="3">Investment securities, net of allowance for credit losses</td><td colspan="2">570,679 </td><td></td><td colspan="3"></td><td colspan="2">571,552 </td><td></td></tr><tr><td colspan="3">Loans (included $39,046 and $38,851 at fair value)</td><td colspan="2">1,309,616 </td><td></td><td colspan="3"></td><td colspan="2">1,323,706 </td><td></td></tr><tr><td colspan="3">Allowance for loan losses</td><td colspan="2">(22,351)</td><td></td><td colspan="3"></td><td colspan="2">(22,420)</td><td></td></tr><tr><td colspan="3">Loans, net of allowance for loan losses</td><td colspan="2">1,287,265 </td><td></td><td colspan="3"></td><td colspan="2">1,301,286 </td><td></td></tr><tr><td colspan="3">Accrued interest and accounts receivable</td><td colspan="2">129,823 </td><td></td><td colspan="3"></td><td colspan="2">107,363 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">30,279 </td><td></td><td colspan="3"></td><td colspan="2">30,157 </td><td></td></tr><tr><td colspan="3">Goodwill, MSRs and other intangible assets</td><td colspan="2">64,374 </td><td></td><td colspan="3"></td><td colspan="2">64,381 </td><td></td></tr><tr><td colspan="3">Other assets (included $15,645 and $12,306 at fair value and assets pledged of $9,811 and $6,764)</td><td colspan="2">162,887 </td><td></td><td colspan="3"></td><td colspan="2">159,308 </td><td></td></tr><tr><td colspan="3">Total assets(a)</td><td>$</td><td>4,090,727 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (included $80,578 and $78,384 at fair value)</td><td>$</td><td>2,428,409 </td><td></td><td colspan="3"></td><td>$</td><td>2,400,688 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities loaned or sold under repurchase agreements (included $264,554 and $169,003 at fair value)</td><td colspan="2">325,670 </td><td></td><td colspan="3"></td><td colspan="2">216,535 </td><td></td></tr><tr><td colspan="3">Short-term borrowings (included $22,856 and $20,042 at fair value)</td><td colspan="2">46,268 </td><td></td><td colspan="3"></td><td colspan="2">44,712 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">228,327 </td><td></td><td colspan="3"></td><td colspan="2">180,428 </td><td></td></tr><tr><td colspan="3">Accounts payable and other liabilities (included $8,917 and $5,637 at fair value)</td><td colspan="2">301,469 </td><td></td><td colspan="3"></td><td colspan="2">290,307 </td><td></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)</td><td colspan="2">28,075 </td><td></td><td colspan="3"></td><td colspan="2">23,020 </td><td></td></tr><tr><td colspan="3">Long-term debt (included $92,730 and $87,924 at fair value)</td><td colspan="2">395,872 </td><td></td><td colspan="3"></td><td colspan="2">391,825 </td><td></td></tr><tr><td colspan="3">Total liabilities(a)</td><td colspan="2">3,754,090 </td><td></td><td colspan="3"></td><td colspan="2">3,547,515 </td><td></td></tr><tr><td colspan="3">Commitments and contingencies (refer to Notes 22, 23 and 24)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares) </td><td colspan="2">29,900 </td><td></td><td colspan="3"></td><td colspan="2">27,404 </td><td></td></tr><tr><td colspan="3">Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)</td><td colspan="2">4,105 </td><td></td><td colspan="3"></td><td colspan="2">4,105 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">89,903 </td><td></td><td colspan="3"></td><td colspan="2">90,128 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">342,414 </td><td></td><td colspan="3"></td><td colspan="2">332,901 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="2">(11,639)</td><td></td><td colspan="3"></td><td colspan="2">(10,443)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (1,233,266,016 and 1,228,275,301 shares)</td><td colspan="2">(118,046)</td><td></td><td colspan="3"></td><td colspan="2">(116,217)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">336,637 </td><td></td><td colspan="3"></td><td colspan="2">327,878 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>4,090,727 </td><td></td><td colspan="3"></td><td>$</td><td>3,875,393 </td><td></td></tr></table>(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(in millions)</td><td colspan="3">March 31, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Trading assets</td><td>$</td><td>2,229 </td><td></td><td colspan="3"></td><td>$</td><td>2,170 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">40,059 </td><td></td><td colspan="3"></td><td colspan="2">37,611 </td><td></td></tr><tr><td colspan="3">All other assets</td><td colspan="2">648 </td><td></td><td colspan="3"></td><td colspan="2">591 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>42,936 </td><td></td><td colspan="3"></td><td>$</td><td>40,372 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Beneficial interests issued by consolidated VIEs</td><td>$</td><td>28,075 </td><td></td><td colspan="3"></td><td>$</td><td>23,020 </td><td></td></tr><tr><td colspan="3">All other liabilities</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">263 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td>$</td><td>28,357 </td><td></td><td colspan="3"></td><td>$</td><td>23,283 </td><td></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 85
q_com108
By what percentage did net income increase for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The net income growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Net Income in 2024: $6,674 million Net Income in 2023: $8,161 million Net Income Growth Rate = (Net Income in 2024 - Net Income in 2023) / Net Income in 2023 * 100 Net Income Growth Rate for Bank of America = ($6,674 million - $8,161 million) / $8,161 million * 100 = -18.21% The net income growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Net Income in 2024: $13,419 million Net Income in 2023: $12,622 million Net Income Growth Rate = (Net Income in 2024 - Net Income in 2023) / Net Income in 2023 * 100 Net Income Growth Rate for JPMorgan Chase = ($13,419 million - $12,622 million) / $12,622 million * 100 = 6.31%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com109
How much did interest income grow for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The interest income growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Interest Income in 2024: $36,285 million Interest Income in 2023: $28,655 million Interest Income Growth Rate = (Interest Income in 2024 - Interest Income in 2023) / Interest Income in 2023 * 100 Interest Income Growth Rate for Bank of America = ($36,285 million - $28,655 million) / $28,655 million * 100 = 26.61% The interest income growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Interest Income in 2024: $47,438 million Interest Income in 2023: $37,004 million Interest Income Growth Rate = (Interest Income in 2024 - Interest Income in 2023) / Interest Income in 2023 * 100 Interest Income Growth Rate for JPMorgan Chase = ($47,438 million - $37,004 million) / $37,004 million * 100 = 28.16%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com110
What is the growth rate in interest expenses for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The interest expense growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Interest Expense in 2024: $22,253 million Interest Expense in 2023: $14,207 million Interest Expense Growth Rate = (Interest Expense in 2024 - Interest Expense in 2023) / Interest Expense in 2023 * 100 Interest Expense Growth Rate for Bank of America = ($22,253 million - $14,207 million) / $14,207 million * 100 = 56.61% The interest expense growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Interest Expense in 2024: $24,356 million Interest Expense in 2023: $16,293 million Interest Expense Growth Rate = (Interest Expense in 2024 - Interest Expense in 2023) / Interest Expense in 2023 * 100 Interest Expense Growth Rate for JPMorgan Chase = ($24,356 million - $16,293 million) / $16,293 million * 100 = 49.52%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com111
By what percentage did net interest income increase for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The net interest income growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Net Interest Income in 2024: $14,032 million Net Interest Income in 2023: $14,448 million Net Interest Income Growth Rate = (Net Interest Income in 2024 - Net Interest Income in 2023) / Net Interest Income in 2023 * 100 Net Interest Income Growth Rate for Bank of America = ($14,032 million - $14,448 million) / $14,448 million * 100 = -2.88% The net interest income growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Net Interest Income in 2024: $23,082 million Net Interest Income in 2023: $20,711 million Net Interest Income Growth Rate = (Net Interest Income in 2024 - Net Interest Income in 2023) / Net Interest Income in 2023 * 100 Net Interest Income Growth Rate for JPMorgan Chase = ($23,082 million - $20,711 million) / $20,711 million * 100 = 11.43%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com112
What is the growth rate of provisions for credit losses for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The provision for credit losses growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Provision for Credit Losses in 2024: $1,319 million Provision for Credit Losses in 2023: $931 million Provision for Credit Losses Growth Rate = (Provision for Credit Losses in 2024 - Provision for Credit Losses in 2023) / Provision for Credit Losses in 2023 * 100 Provision for Credit Losses Growth Rate for Bank of America = ($1,319 million - $931 million) / $931 million * 100 = 41.67% The provision for credit losses growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Provision for Credit Losses in 2024: $1,884 million Provision for Credit Losses in 2023: $2,275 million Provision for Credit Losses Growth Rate = (Provision for Credit Losses in 2024 - Provision for Credit Losses in 2023) / Provision for Credit Losses in 2023 * 100 Provision for Credit Losses Growth Rate for JPMorgan Chase = ($1,884 million - $2,275 million) / $2,275 million * 100 = -17.20%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com113
How much has noninterest income changed for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The noninterest income growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Noninterest Income in 2024: $11,786 million Noninterest Income in 2023: $11,810 million Noninterest Income Growth Rate = (Noninterest Income in 2024 - Noninterest Income in 2023) / Noninterest Income in 2023 * 100 Noninterest Income Growth Rate for Bank of America = ($11,786 million - $11,810 million) / $11,810 million * 100 = -0.20% The noninterest income growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Noninterest Income in 2024: $18,852 million Noninterest Income in 2023: $17,638 million Noninterest Income Growth Rate = (Noninterest Income in 2024 - Noninterest Income in 2023) / Noninterest Income in 2023 * 100 Noninterest Income Growth Rate for JPMorgan Chase = ($18,852 million - $17,638 million) / $17,638 million * 100 = 6.88%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com114
By what percentage did noninterest expenses rise for Bank of America and JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023?
The noninterest expense growth rate for Bank of America for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Noninterest Expense in 2024: $17,237 million Noninterest Expense in 2023: $16,238 million Noninterest Expense Growth Rate = (Noninterest Expense in 2024 - Noninterest Expense in 2023) / Noninterest Expense in 2023 * 100 Noninterest Expense Growth Rate for Bank of America = ($17,237 million - $16,238 million) / $16,238 million * 100 = 6.15% The noninterest expense growth rate for JPMorgan Chase for the three months ended March 31, 2024, compared to the same period in 2023, is calculated as follows: Noninterest Expense in 2024: $22,757 million Noninterest Expense in 2023: $20,107 million Noninterest Expense Growth Rate = (Noninterest Expense in 2024 - Noninterest Expense in 2023) / Noninterest Expense in 2023 * 100 Noninterest Expense Growth Rate for JPMorgan Chase = ($22,757 million - $20,107 million) / $20,107 million * 100=13.17%
Comparison
43;83
0000070858-24-000156;0000019617-24-000326
Item 1. Financial Statements;Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries | | | | | | | | | | |---:|:-----------------------------------------------------|:----------------------------|:--------|:-------|:-----|:--------|:---|:-------| | 2 | Consolidated Statement of Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (In millions, except per share information) | | 2024 | | 2023 | | | | | 6 | Net interest income | | | | | | | | | 7 | Interest income | | $ | 36,285 | | | $ | 28,655 | | 8 | Interest expense | | 22,253 | | | 14,207 | | | | 9 | Net interest income | | 14,032 | | | 14,448 | | | | 11 | Noninterest income | | | | | | | | | 12 | Fees and commissions | | 8,660 | | | 7,894 | | | | 13 | Market making and similar activities | | 3,888 | | | 4,712 | | | | 14 | Other income (loss) | | (762) | | | (796) | | | | 15 | Total noninterest income | | 11,786 | | | 11,810 | | | | 16 | Total revenue, net of interest expense | | 25,818 | | | 26,258 | | | | 18 | Provision for credit losses | | 1,319 | | | 931 | | | | 20 | Noninterest expense | | | | | | | | | 21 | Compensation and benefits | | 10,195 | | | 9,918 | | | | 22 | Occupancy and equipment | | 1,811 | | | 1,799 | | | | 23 | Information processing and communications | | 1,800 | | | 1,697 | | | | 24 | Product delivery and transaction related | | 851 | | | 890 | | | | 25 | Professional fees | | 548 | | | 537 | | | | 26 | Marketing | | 455 | | | 458 | | | | 27 | Other general operating | | 1,577 | | | 939 | | | | 30 | Total noninterest expense | | 17,237 | | | 16,238 | | | | 31 | Income before income taxes | | 7,262 | | | 9,089 | | | | 32 | Income tax expense | | 588 | | | 928 | | | | 33 | Net income | | $ | 6,674 | | | $ | 8,161 | | 34 | Preferred stock dividends | | 532 | | | 505 | | | | 35 | Net income applicable to common shareholders | | $ | 6,142 | | | $ | 7,656 | | 37 | Per common share information | | | | | | | | | 38 | Earnings | | $ | 0.77 | | | $ | 0.95 | | 39 | Diluted earnings | | 0.76 | | | 0.94 | | | | 41 | Average common shares issued and outstanding | | 7,968.2 | | | 8,065.9 | | | | 42 | Average diluted common shares issued and outstanding | | 8,031.4 | | | 8,182.3 | | | | | | | | | | | | | |---:|:-------------------------------------------------------|:----------------------------|:------|:------|:-----|:------|:---|:-------| | 2 | Consolidated Statement of Comprehensive Income | | | | | | | | | 4 | | Three Months Ended March 31 | | | | | | | | 5 | (Dollars in millions) | | 2024 | | 2023 | | | | | 6 | Net income | | $ | 6,674 | | | $ | 8,161 | | 7 | Other comprehensive income (loss), net-of-tax: | | | | | | | | | 8 | Net change in debt securities | | 332 | | | 555 | | | | 9 | Net change in debit valuation adjustments | | (188) | | | 10 | | | | 10 | Net change in derivatives | | (416) | | | 2,042 | | | | 11 | Employee benefit plan adjustments | | 23 | | | 10 | | | | 12 | Net change in foreign currency translation adjustments | | (20) | | | 12 | | | | 13 | Other comprehensive income (loss) | | (269) | | | 2,629 | | | | 14 | Comprehensive income (loss) | | $ | 6,405 | | | $ | 10,790 | See accompanying Notes to Consolidated Financial Statements. | | | |---:|:-------------------| | 1 | 43 Bank of America | , JPMorgan Chase & Co. Consolidated statements of income (unaudited) | | | | | | | | | |---:|:-------------------------------------------------|:-----------------------------|:-------|:-----|:--------|:---|:-------| | 1 | | Three months ended March 31, | | | | | | | 2 | (in millions, except per share data) | 2024 | | 2023 | | | | | 3 | Revenue | | | | | | | | 4 | Investment banking fees | $ | 1,954 | | | $ | 1,649 | | 5 | Principal transactions | 6,790 | | | 7,615 | | | | 6 | Lending- and deposit-related fees | 1,902 | | | 1,620 | | | | 7 | Asset management fees | 4,146 | | | 3,465 | | | | 8 | Commissions and other fees | 1,805 | | | 1,695 | | | | 10 | Investment securities losses | (366) | | | (868) | | | | 11 | Mortgage fees and related income | 275 | | | 221 | | | | 12 | Card income | 1,218 | | | 1,234 | | | | 13 | Other income | 1,128 | | | 1,007 | | | | 14 | Noninterest revenue | 18,852 | | | 17,638 | | | | 15 | Interest income | 47,438 | | | 37,004 | | | | 16 | Interest expense | 24,356 | | | 16,293 | | | | 17 | Net interest income | 23,082 | | | 20,711 | | | | 18 | Total net revenue | 41,934 | | | 38,349 | | | | 20 | Provision for credit losses | 1,884 | | | 2,275 | | | | 22 | Noninterest expense | | | | | | | | 23 | Compensation expense | 13,118 | | | 11,676 | | | | 24 | Occupancy expense | 1,211 | | | 1,115 | | | | 25 | Technology, communications and equipment expense | 2,421 | | | 2,184 | | | | 26 | Professional and outside services | 2,548 | | | 2,448 | | | | 27 | Marketing | 1,160 | | | 1,045 | | | | 28 | Other expense | 2,299 | | | 1,639 | | | | 29 | Total noninterest expense | 22,757 | | | 20,107 | | | | 30 | Income before income tax expense | 17,293 | | | 15,967 | | | | 31 | Income tax expense | 3,874 | | | 3,345 | | | | 32 | Net income | $ | 13,419 | | | $ | 12,622 | | 33 | Net income applicable to common stockholders | $ | 12,942 | | | $ | 12,193 | | 34 | Net income per common share data | | | | | | | | 35 | Basic earnings per share | $ | 4.45 | | | $ | 4.11 | | 36 | Diluted earnings per share | 4.44 | | | 4.10 | | | | 38 | Weighted-average basic shares | 2,908.3 | | | 2,968.5 | | | | 39 | Weighted-average diluted shares | 2,912.8 | | | 2,972.7 | | | The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
BANK OF AMERICA CORP /DE/ 10-Q form for quarterly period ended 2024-03-31, page 43: Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMORGAN CHASE & CO 10-Q form for quarterly period ended 2024-03-31, page 83: JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
Item 1. Financial Statements Bank of America Corporation and Subsidiaries <table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Income</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(In millions, except per share information)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>36,285 </td><td></td><td colspan="3"></td><td>$</td><td>28,655 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">22,253 </td><td></td><td colspan="3"></td><td colspan="2">14,207 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">14,032 </td><td></td><td colspan="3"></td><td colspan="2">14,448 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Fees and commissions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,660 </td><td></td><td colspan="3"></td><td colspan="2">7,894 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Market making and similar activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">4,712 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(762)</td><td></td><td colspan="3"></td><td colspan="2">(796)</td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">11,786 </td><td></td><td colspan="3"></td><td colspan="2">11,810 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total revenue, net of interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">25,818 </td><td></td><td colspan="3"></td><td colspan="2">26,258 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,319 </td><td></td><td colspan="3"></td><td colspan="2">931 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">10,195 </td><td></td><td colspan="3"></td><td colspan="2">9,918 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy and equipment</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,811 </td><td></td><td colspan="3"></td><td colspan="2">1,799 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,800 </td><td></td><td colspan="3"></td><td colspan="2">1,697 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Product delivery and transaction related</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">851 </td><td></td><td colspan="3"></td><td colspan="2">890 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional fees</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">548 </td><td></td><td colspan="3"></td><td colspan="2">537 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">455 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other general operating</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">1,577 </td><td></td><td colspan="3"></td><td colspan="2">939 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">17,237 </td><td></td><td colspan="3"></td><td colspan="2">16,238 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,262 </td><td></td><td colspan="3"></td><td colspan="2">9,089 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">588 </td><td></td><td colspan="3"></td><td colspan="2">928 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">532 </td><td></td><td colspan="3"></td><td colspan="2">505 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common shareholders</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,142 </td><td></td><td colspan="3"></td><td>$</td><td>7,656 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Per common share information</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>0.77 </td><td></td><td colspan="3"></td><td>$</td><td>0.95 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">0.76 </td><td></td><td colspan="3"></td><td colspan="2">0.94 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">7,968.2 </td><td></td><td colspan="3"></td><td colspan="2">8,065.9 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average diluted common shares issued and outstanding</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">8,031.4 </td><td></td><td colspan="3"></td><td colspan="2">8,182.3 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table><table><tr><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">Consolidated Statement of Comprehensive Income</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="9">Three Months Ended March 31</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(Dollars in millions)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,674 </td><td></td><td colspan="3"></td><td>$</td><td>8,161 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss), net-of-tax:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debt securities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">332 </td><td></td><td colspan="3"></td><td colspan="2">555 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in debit valuation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(188)</td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in derivatives</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(416)</td><td></td><td colspan="3"></td><td colspan="2">2,042 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee benefit plan adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">23 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in foreign currency translation adjustments</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(20)</td><td></td><td colspan="3"></td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="2">(269)</td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Comprehensive income (loss)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td>$</td><td>6,405 </td><td></td><td colspan="3"></td><td>$</td><td>10,790 </td><td></td><td colspan="3"></td><td colspan="3"></td></tr></table> See accompanying Notes to Consolidated Financial Statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">43 Bank of America</td><td colspan="3"></td><td colspan="3"></td></tr></table> , JPMorgan Chase & Co. Consolidated statements of income (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="9">Three months ended March 31,</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(in millions, except per share data)</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking fees</td><td>$</td><td>1,954 </td><td></td><td colspan="3"></td><td>$</td><td>1,649 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Principal transactions</td><td colspan="2">6,790 </td><td></td><td colspan="3"></td><td colspan="2">7,615 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Lending- and deposit-related fees</td><td colspan="2">1,902 </td><td></td><td colspan="3"></td><td colspan="2">1,620 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Asset management fees</td><td colspan="2">4,146 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commissions and other fees</td><td colspan="2">1,805 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities losses</td><td colspan="2">(366)</td><td></td><td colspan="3"></td><td colspan="2">(868)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Mortgage fees and related income</td><td colspan="2">275 </td><td></td><td colspan="3"></td><td colspan="2">221 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card income</td><td colspan="2">1,218 </td><td></td><td colspan="3"></td><td colspan="2">1,234 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other income</td><td colspan="2">1,128 </td><td></td><td colspan="3"></td><td colspan="2">1,007 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest revenue</td><td colspan="2">18,852 </td><td></td><td colspan="3"></td><td colspan="2">17,638 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">47,438 </td><td></td><td colspan="3"></td><td colspan="2">37,004 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">24,356 </td><td></td><td colspan="3"></td><td colspan="2">16,293 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">23,082 </td><td></td><td colspan="3"></td><td colspan="2">20,711 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total net revenue</td><td colspan="2">41,934 </td><td></td><td colspan="3"></td><td colspan="2">38,349 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">1,884 </td><td></td><td colspan="3"></td><td colspan="2">2,275 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation expense</td><td colspan="2">13,118 </td><td></td><td colspan="3"></td><td colspan="2">11,676 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Occupancy expense</td><td colspan="2">1,211 </td><td></td><td colspan="3"></td><td colspan="2">1,115 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Technology, communications and equipment expense</td><td colspan="2">2,421 </td><td></td><td colspan="3"></td><td colspan="2">2,184 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Professional and outside services</td><td colspan="2">2,548 </td><td></td><td colspan="3"></td><td colspan="2">2,448 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketing</td><td colspan="2">1,160 </td><td></td><td colspan="3"></td><td colspan="2">1,045 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">2,299 </td><td></td><td colspan="3"></td><td colspan="2">1,639 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">22,757 </td><td></td><td colspan="3"></td><td colspan="2">20,107 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income tax expense</td><td colspan="2">17,293 </td><td></td><td colspan="3"></td><td colspan="2">15,967 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">3,874 </td><td></td><td colspan="3"></td><td colspan="2">3,345 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>13,419 </td><td></td><td colspan="3"></td><td>$</td><td>12,622 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income applicable to common stockholders</td><td>$</td><td>12,942 </td><td></td><td colspan="3"></td><td>$</td><td>12,193 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income per common share data</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic earnings per share</td><td>$</td><td>4.45 </td><td></td><td colspan="3"></td><td>$</td><td>4.11 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Diluted earnings per share</td><td colspan="2">4.44 </td><td></td><td colspan="3"></td><td colspan="2">4.10 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average basic shares</td><td colspan="2">2,908.3 </td><td></td><td colspan="3"></td><td colspan="2">2,968.5 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Weighted-average diluted shares</td><td colspan="2">2,912.8 </td><td></td><td colspan="3"></td><td colspan="2">2,972.7 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements. 83
q_com115
What is the cost growth rate for ExxonMobil and Chevron for the six months ended June 30, 2024, compared to the same period in 2023?
The cost growth rate for ExxonMobil for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Cost Growth Rate = (Current Period Costs - Previous Period Costs) / Previous Period Costs Cost Growth Rate = ($150,109 million - $141,019 million) / $141,019 million = 0.064 or 6.4% The cost growth rate for Chevron for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Cost Growth Rate = (Current Period Costs - Previous Period Costs) / Previous Period Costs Cost Growth Rate = ($84,939 million - $82,333 million) / $82,333 million = 0.032 or 3.2%
Comparison
3;3
0000034088-24-000050;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , PART I. FINANCIAL INFORMATION
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , PART I. FINANCIAL INFORMATION
q_com116
What is the margin growth rate for ExxonMobil and Chevron for the six months ended June 30, 2024, compared to the same period in 2023?
The margin growth rate for ExxonMobil for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Margin Growth Rate = (Current Period Margin - Previous Period Margin) / Previous Period Margin Margin = Total Revenues and Other Income - Total Costs and Other Deductions Current Period Margin = $176,143 million - $150,109 million = $26,034 million Previous Period Margin = $169,478 million - $141,019 million = $28,459 million Margin Growth Rate = ($26,034 million - $28,459 million) / $28,459 million = -0.085 or -8.5% The margin growth rate for Chevron for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Margin Growth Rate = (Current Period Margin - Previous Period Margin) / Previous Period Margin Margin = Total Revenues and Other Income - Total Costs and Other Deductions Current Period Margin = $99,897 million - $84,939 million = $14,958 million Previous Period Margin = $99,689 million - $82,333 million = $17,356 million Margin Growth Rate = ($14,958 million - $17,356 million) / $17,356 million = -0.138 or -13.8%
Comparison
3;3
0000034088-24-000050;0000093410-24-000040
Item 1. Financial StatementItem 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , PART I. FINANCIAL INFORMATION
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , PART I. FINANCIAL INFORMATION
q_com117
What is the Net Working Capital Turnover Ratio for ExxonMobil and Chevron for the six months ended June 30, 2024?
The Net Working Capital Turnover Ratio for ExxonMobil for the six months ended June 30, 2024, is calculated as follows: Net Working Capital Turnover Ratio = Net Sales / Average Working Capital Net Sales: $170,397 million Average Working Capital: (Current Assets - Current Liabilities) Average Working Capital: (($96,238 million - $70,763 million) + ($96,609 million - $65,316 million)) / 2 = $28,384 million Net Working Capital Turnover Ratio = $170,397 million / $28,384 million = 6.00 The Net Working Capital Turnover Ratio for Chevron for the six months ended June 30, 2024, is calculated as follows: Net Working Capital Turnover Ratio = Net Sales / Average Working Capital Net Sales: $96,154 million Average Working Capital: (Current Assets - Current Liabilities) Average Working Capital: (($39,369 million - $34,027 million) + ($41,128 million - $32,258 million)) / 2 = $7,106 million Net Working Capital Turnover Ratio = $96,154 million / $7,106 million = 13.53
Comparison
3, 5;3;5
0000034088-24-000050;0000093410-24-000040;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5: | | | |---:|:-------------------------------------| | 2 | CONDENSED CONSOLIDATED BALANCE SHEET | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------| | 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | | | 3 | ASSETS | | | | | 4 | Current assets | | | | | 5 | Cash and cash equivalents | 26,460 | | 31,539 | | 6 | Cash and cash equivalents – restricted | 28 | | 29 | | 7 | Notes and accounts receivable – net | 43,071 | | 38,015 | | 8 | Inventories | | | | | 9 | Crude oil, products and merchandise | 19,685 | | 20,528 | | 10 | Materials and supplies | 4,818 | | 4,592 | | 11 | Other current assets | 2,176 | | 1,906 | | 12 | Total current assets | 96,238 | | 96,609 | | 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 | | 14 | Property, plant and equipment – net | 298,283 | | 214,940 | | 15 | Other assets, including intangibles – net | 18,238 | | 17,138 | | 16 | Total Assets | 460,707 | | 376,317 | | 18 | LIABILITIES | | | | | 19 | Current liabilities | | | | | 20 | Notes and loans payable | 6,621 | | 4,090 | | 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 | | 22 | Income taxes payable | 4,035 | | 3,189 | | 23 | Total current liabilities | 70,763 | | 65,316 | | 24 | Long-term debt | 36,565 | | 37,483 | | 25 | Postretirement benefits reserves | 10,398 | | 10,496 | | 26 | Deferred income tax liabilities | 40,080 | | 24,452 | | 27 | Long-term obligations to equity companies | 1,612 | | 1,804 | | 28 | Other long-term obligations | 25,023 | | 24,228 | | 29 | Total Liabilities | 184,441 | | 163,779 | | 31 | Commitments and contingencies (Note 3) | | | | | 33 | EQUITY | | | | | 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 | | 35 | Earnings reinvested | 463,294 | | 453,927 | | 36 | Accumulated other comprehensive income | (13,187) | | (11,989) | | 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) | | 38 | ExxonMobil share of equity | 268,405 | | 204,802 | | 39 | Noncontrolling interests | 7,861 | | 7,736 | | 40 | Total Equity | 276,266 | | 212,538 | | 41 | Total Liabilities and Equity | 460,707 | | 376,317 | | 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | 5 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 5: CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------|:----------------------|:--------|:--------------------|:---------|:---|:--------| | 1 | | At June 30,2024 | | At December 31,2023 | | | | | 2 | | (Millions of dollars) | | | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 4,008 | | | $ | 8,178 | | 6 | Marketable securities | - | | | 45 | | | | 7 | Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301) | 20,752 | | | 19,921 | | | | 8 | Inventories: | | | | | | | | 9 | Crude oil and products | 7,662 | | | 6,059 | | | | 10 | Chemicals | 426 | | | 406 | | | | 11 | Materials, supplies and other | 2,389 | | | 2,147 | | | | 12 | Total inventories | 10,477 | | | 8,612 | | | | 13 | Prepaid expenses and other current assets | 4,132 | | | 4,372 | | | | 14 | Total Current Assets | 39,369 | | | 41,128 | | | | 15 | Long-term receivables (less allowance: 2024 - $353; 2023 - $340) | 974 | | | 942 | | | | 16 | Investments and advances | 47,654 | | | 46,812 | | | | 17 | Properties, plant and equipment, at cost | 349,859 | | | 346,081 | | | | 18 | Less: Accumulated depreciation, depletion and amortization | 196,856 | | | 192,462 | | | | 19 | Properties, plant and equipment, net | 153,003 | | | 153,619 | | | | 20 | Deferred charges and other assets | 13,913 | | | 13,734 | | | | 21 | Goodwill | 4,722 | | | 4,722 | | | | 22 | Assets held for sale | 1,009 | | | 675 | | | | 23 | Total Assets | $ | 260,644 | | | $ | 261,632 | | 24 | Liabilities and Equity | | | | | | | | 25 | Short-term debt | $ | 1,735 | | | $ | 529 | | 26 | Accounts payable | 21,007 | | | 20,423 | | | | 27 | Accrued liabilities | 9,054 | | | 7,655 | | | | 28 | Federal and other taxes on income | 893 | | | 1,863 | | | | 29 | Other taxes payable | 1,338 | | | 1,788 | | | | 30 | Total Current Liabilities | 34,027 | | | 32,258 | | | | 31 | Long-term debt | 21,449 | | | 20,307 | | | | 33 | Deferred credits and other noncurrent obligations | 21,454 | | | 24,226 | | | | 34 | Noncurrent deferred income taxes | 19,509 | | | 18,830 | | | | 35 | Noncurrent employee benefit plans | 3,942 | | | 4,082 | | | | 36 | Total Liabilities* | $ | 100,381 | | | $ | 99,703 | | 37 | Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) | - | | | - | | | | 38 | Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023) | 1,832 | | | 1,832 | | | | 39 | Capital in excess of par value | 21,495 | | | 21,365 | | | | 40 | Retained earnings | 203,960 | | | 200,025 | | | | 41 | Accumulated other comprehensive losses | (2,924) | | | (2,960) | | | | 42 | Deferred compensation and benefit plan trust | (240) | | | (240) | | | | 43 | Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively) | (64,890) | | | (59,065) | | | | 44 | Total Chevron Corporation Stockholders' Equity | 159,233 | | | 160,957 | | | | 45 | Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively) | 1,030 | | | 972 | | | | 46 | Total Equity | 160,263 | | | 161,929 | | | | 47 | Total Liabilities and Equity | $ | 260,644 | | | $ | 261,632 | | 49 | * Refer to Note 12 Other Contingencies and Commitments. | | | | | | | See accompanying notes to consolidated financial statements. 5
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , | | | |---:|:-------------------------------------| | 2 | CONDENSED CONSOLIDATED BALANCE SHEET | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------| | 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | | | 3 | ASSETS | | | | | 4 | Current assets | | | | | 5 | Cash and cash equivalents | 26,460 | | 31,539 | | 6 | Cash and cash equivalents – restricted | 28 | | 29 | | 7 | Notes and accounts receivable – net | 43,071 | | 38,015 | | 8 | Inventories | | | | | 9 | Crude oil, products and merchandise | 19,685 | | 20,528 | | 10 | Materials and supplies | 4,818 | | 4,592 | | 11 | Other current assets | 2,176 | | 1,906 | | 12 | Total current assets | 96,238 | | 96,609 | | 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 | | 14 | Property, plant and equipment – net | 298,283 | | 214,940 | | 15 | Other assets, including intangibles – net | 18,238 | | 17,138 | | 16 | Total Assets | 460,707 | | 376,317 | | 18 | LIABILITIES | | | | | 19 | Current liabilities | | | | | 20 | Notes and loans payable | 6,621 | | 4,090 | | 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 | | 22 | Income taxes payable | 4,035 | | 3,189 | | 23 | Total current liabilities | 70,763 | | 65,316 | | 24 | Long-term debt | 36,565 | | 37,483 | | 25 | Postretirement benefits reserves | 10,398 | | 10,496 | | 26 | Deferred income tax liabilities | 40,080 | | 24,452 | | 27 | Long-term obligations to equity companies | 1,612 | | 1,804 | | 28 | Other long-term obligations | 25,023 | | 24,228 | | 29 | Total Liabilities | 184,441 | | 163,779 | | 31 | Commitments and contingencies (Note 3) | | | | | 33 | EQUITY | | | | | 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 | | 35 | Earnings reinvested | 463,294 | | 453,927 | | 36 | Accumulated other comprehensive income | (13,187) | | (11,989) | | 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) | | 38 | ExxonMobil share of equity | 268,405 | | 204,802 | | 39 | Noncontrolling interests | 7,861 | | 7,736 | | 40 | Total Equity | 276,266 | | 212,538 | | 41 | Total Liabilities and Equity | 460,707 | | 376,317 | | 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | 5 , PART I. FINANCIAL INFORMATION , CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------|:----------------------|:--------|:--------------------|:---------|:---|:--------| | 1 | | At June 30,2024 | | At December 31,2023 | | | | | 2 | | (Millions of dollars) | | | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 4,008 | | | $ | 8,178 | | 6 | Marketable securities | - | | | 45 | | | | 7 | Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301) | 20,752 | | | 19,921 | | | | 8 | Inventories: | | | | | | | | 9 | Crude oil and products | 7,662 | | | 6,059 | | | | 10 | Chemicals | 426 | | | 406 | | | | 11 | Materials, supplies and other | 2,389 | | | 2,147 | | | | 12 | Total inventories | 10,477 | | | 8,612 | | | | 13 | Prepaid expenses and other current assets | 4,132 | | | 4,372 | | | | 14 | Total Current Assets | 39,369 | | | 41,128 | | | | 15 | Long-term receivables (less allowance: 2024 - $353; 2023 - $340) | 974 | | | 942 | | | | 16 | Investments and advances | 47,654 | | | 46,812 | | | | 17 | Properties, plant and equipment, at cost | 349,859 | | | 346,081 | | | | 18 | Less: Accumulated depreciation, depletion and amortization | 196,856 | | | 192,462 | | | | 19 | Properties, plant and equipment, net | 153,003 | | | 153,619 | | | | 20 | Deferred charges and other assets | 13,913 | | | 13,734 | | | | 21 | Goodwill | 4,722 | | | 4,722 | | | | 22 | Assets held for sale | 1,009 | | | 675 | | | | 23 | Total Assets | $ | 260,644 | | | $ | 261,632 | | 24 | Liabilities and Equity | | | | | | | | 25 | Short-term debt | $ | 1,735 | | | $ | 529 | | 26 | Accounts payable | 21,007 | | | 20,423 | | | | 27 | Accrued liabilities | 9,054 | | | 7,655 | | | | 28 | Federal and other taxes on income | 893 | | | 1,863 | | | | 29 | Other taxes payable | 1,338 | | | 1,788 | | | | 30 | Total Current Liabilities | 34,027 | | | 32,258 | | | | 31 | Long-term debt | 21,449 | | | 20,307 | | | | 33 | Deferred credits and other noncurrent obligations | 21,454 | | | 24,226 | | | | 34 | Noncurrent deferred income taxes | 19,509 | | | 18,830 | | | | 35 | Noncurrent employee benefit plans | 3,942 | | | 4,082 | | | | 36 | Total Liabilities* | $ | 100,381 | | | $ | 99,703 | | 37 | Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) | - | | | - | | | | 38 | Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023) | 1,832 | | | 1,832 | | | | 39 | Capital in excess of par value | 21,495 | | | 21,365 | | | | 40 | Retained earnings | 203,960 | | | 200,025 | | | | 41 | Accumulated other comprehensive losses | (2,924) | | | (2,960) | | | | 42 | Deferred compensation and benefit plan trust | (240) | | | (240) | | | | 43 | Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively) | (64,890) | | | (59,065) | | | | 44 | Total Chevron Corporation Stockholders' Equity | 159,233 | | | 160,957 | | | | 45 | Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively) | 1,030 | | | 972 | | | | 46 | Total Equity | 160,263 | | | 161,929 | | | | 47 | Total Liabilities and Equity | $ | 260,644 | | | $ | 261,632 | | 49 | * Refer to Note 12 Other Contingencies and Commitments. | | | | | | | See accompanying notes to consolidated financial statements. 5
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 5: CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">At June 30,2024</td><td colspan="3"></td><td colspan="3">At December 31,2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Millions of dollars)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td>4,008 </td><td></td><td colspan="3"></td><td>$</td><td>8,178 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301)</td><td colspan="3"></td><td colspan="2">20,752 </td><td></td><td colspan="3"></td><td colspan="2">19,921 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and products</td><td colspan="3"></td><td colspan="2">7,662 </td><td></td><td colspan="3"></td><td colspan="2">6,059 </td><td></td></tr><tr><td colspan="3">Chemicals</td><td colspan="3"></td><td colspan="2">426 </td><td></td><td colspan="3"></td><td colspan="2">406 </td><td></td></tr><tr><td colspan="3">Materials, supplies and other</td><td colspan="3"></td><td colspan="2">2,389 </td><td></td><td colspan="3"></td><td colspan="2">2,147 </td><td></td></tr><tr><td colspan="3">Total inventories</td><td colspan="3"></td><td colspan="2">10,477 </td><td></td><td colspan="3"></td><td colspan="2">8,612 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="3"></td><td colspan="2">4,132 </td><td></td><td colspan="3"></td><td colspan="2">4,372 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="3"></td><td colspan="2">39,369 </td><td></td><td colspan="3"></td><td colspan="2">41,128 </td><td></td></tr><tr><td colspan="3">Long-term receivables (less allowance: 2024 - $353; 2023 - $340)</td><td colspan="3"></td><td colspan="2">974 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td></tr><tr><td colspan="3">Investments and advances</td><td colspan="3"></td><td colspan="2">47,654 </td><td></td><td colspan="3"></td><td colspan="2">46,812 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, at cost</td><td colspan="3"></td><td colspan="2">349,859 </td><td></td><td colspan="3"></td><td colspan="2">346,081 </td><td></td></tr><tr><td colspan="3">Less: Accumulated depreciation, depletion and amortization</td><td colspan="3"></td><td colspan="2">196,856 </td><td></td><td colspan="3"></td><td colspan="2">192,462 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, net</td><td colspan="3"></td><td colspan="2">153,003 </td><td></td><td colspan="3"></td><td colspan="2">153,619 </td><td></td></tr><tr><td colspan="3">Deferred charges and other assets</td><td colspan="3"></td><td colspan="2">13,913 </td><td></td><td colspan="3"></td><td colspan="2">13,734 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="3"></td><td colspan="2">4,722 </td><td></td><td colspan="3"></td><td colspan="2">4,722 </td><td></td></tr><tr><td colspan="3">Assets held for sale</td><td colspan="3"></td><td colspan="2">1,009 </td><td></td><td colspan="3"></td><td colspan="2">675 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3">Liabilities and Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short-term debt </td><td colspan="3"></td><td>$</td><td>1,735 </td><td></td><td colspan="3"></td><td>$</td><td>529 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">21,007 </td><td></td><td colspan="3"></td><td colspan="2">20,423 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="3"></td><td colspan="2">9,054 </td><td></td><td colspan="3"></td><td colspan="2">7,655 </td><td></td></tr><tr><td colspan="3">Federal and other taxes on income</td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">1,863 </td><td></td></tr><tr><td colspan="3">Other taxes payable</td><td colspan="3"></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">1,788 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="3"></td><td colspan="2">34,027 </td><td></td><td colspan="3"></td><td colspan="2">32,258 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">21,449 </td><td></td><td colspan="3"></td><td colspan="2">20,307 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred credits and other noncurrent obligations</td><td colspan="3"></td><td colspan="2">21,454 </td><td></td><td colspan="3"></td><td colspan="2">24,226 </td><td></td></tr><tr><td colspan="3">Noncurrent deferred income taxes</td><td colspan="3"></td><td colspan="2">19,509 </td><td></td><td colspan="3"></td><td colspan="2">18,830 </td><td></td></tr><tr><td colspan="3">Noncurrent employee benefit plans</td><td colspan="3"></td><td colspan="2">3,942 </td><td></td><td colspan="3"></td><td colspan="2">4,082 </td><td></td></tr><tr><td colspan="3">Total Liabilities*</td><td colspan="3"></td><td>$</td><td>100,381 </td><td></td><td colspan="3"></td><td>$</td><td>99,703 </td><td></td></tr><tr><td colspan="3">Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023)</td><td colspan="3"></td><td colspan="2">1,832 </td><td></td><td colspan="3"></td><td colspan="2">1,832 </td><td></td></tr><tr><td colspan="3">Capital in excess of par value</td><td colspan="3"></td><td colspan="2">21,495 </td><td></td><td colspan="3"></td><td colspan="2">21,365 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">203,960 </td><td></td><td colspan="3"></td><td colspan="2">200,025 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="3"></td><td colspan="2">(2,924)</td><td></td><td colspan="3"></td><td colspan="2">(2,960)</td><td></td></tr><tr><td colspan="3">Deferred compensation and benefit plan trust</td><td colspan="3"></td><td colspan="2">(240)</td><td></td><td colspan="3"></td><td colspan="2">(240)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">(64,890)</td><td></td><td colspan="3"></td><td colspan="2">(59,065)</td><td></td></tr><tr><td colspan="3">Total Chevron Corporation Stockholders' Equity</td><td colspan="3"></td><td colspan="2">159,233 </td><td></td><td colspan="3"></td><td colspan="2">160,957 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">1,030 </td><td></td><td colspan="3"></td><td colspan="2">972 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">160,263 </td><td></td><td colspan="3"></td><td colspan="2">161,929 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">* Refer to Note 12 Other Contingencies and Commitments.</td></tr><tr><td colspan="3"></td></tr></table>See accompanying notes to consolidated financial statements. 5
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5 , PART I. FINANCIAL INFORMATION , CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">At June 30,2024</td><td colspan="3"></td><td colspan="3">At December 31,2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Millions of dollars)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td>4,008 </td><td></td><td colspan="3"></td><td>$</td><td>8,178 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301)</td><td colspan="3"></td><td colspan="2">20,752 </td><td></td><td colspan="3"></td><td colspan="2">19,921 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and products</td><td colspan="3"></td><td colspan="2">7,662 </td><td></td><td colspan="3"></td><td colspan="2">6,059 </td><td></td></tr><tr><td colspan="3">Chemicals</td><td colspan="3"></td><td colspan="2">426 </td><td></td><td colspan="3"></td><td colspan="2">406 </td><td></td></tr><tr><td colspan="3">Materials, supplies and other</td><td colspan="3"></td><td colspan="2">2,389 </td><td></td><td colspan="3"></td><td colspan="2">2,147 </td><td></td></tr><tr><td colspan="3">Total inventories</td><td colspan="3"></td><td colspan="2">10,477 </td><td></td><td colspan="3"></td><td colspan="2">8,612 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="3"></td><td colspan="2">4,132 </td><td></td><td colspan="3"></td><td colspan="2">4,372 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="3"></td><td colspan="2">39,369 </td><td></td><td colspan="3"></td><td colspan="2">41,128 </td><td></td></tr><tr><td colspan="3">Long-term receivables (less allowance: 2024 - $353; 2023 - $340)</td><td colspan="3"></td><td colspan="2">974 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td></tr><tr><td colspan="3">Investments and advances</td><td colspan="3"></td><td colspan="2">47,654 </td><td></td><td colspan="3"></td><td colspan="2">46,812 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, at cost</td><td colspan="3"></td><td colspan="2">349,859 </td><td></td><td colspan="3"></td><td colspan="2">346,081 </td><td></td></tr><tr><td colspan="3">Less: Accumulated depreciation, depletion and amortization</td><td colspan="3"></td><td colspan="2">196,856 </td><td></td><td colspan="3"></td><td colspan="2">192,462 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, net</td><td colspan="3"></td><td colspan="2">153,003 </td><td></td><td colspan="3"></td><td colspan="2">153,619 </td><td></td></tr><tr><td colspan="3">Deferred charges and other assets</td><td colspan="3"></td><td colspan="2">13,913 </td><td></td><td colspan="3"></td><td colspan="2">13,734 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="3"></td><td colspan="2">4,722 </td><td></td><td colspan="3"></td><td colspan="2">4,722 </td><td></td></tr><tr><td colspan="3">Assets held for sale</td><td colspan="3"></td><td colspan="2">1,009 </td><td></td><td colspan="3"></td><td colspan="2">675 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3">Liabilities and Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short-term debt </td><td colspan="3"></td><td>$</td><td>1,735 </td><td></td><td colspan="3"></td><td>$</td><td>529 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">21,007 </td><td></td><td colspan="3"></td><td colspan="2">20,423 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="3"></td><td colspan="2">9,054 </td><td></td><td colspan="3"></td><td colspan="2">7,655 </td><td></td></tr><tr><td colspan="3">Federal and other taxes on income</td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">1,863 </td><td></td></tr><tr><td colspan="3">Other taxes payable</td><td colspan="3"></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">1,788 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="3"></td><td colspan="2">34,027 </td><td></td><td colspan="3"></td><td colspan="2">32,258 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">21,449 </td><td></td><td colspan="3"></td><td colspan="2">20,307 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred credits and other noncurrent obligations</td><td colspan="3"></td><td colspan="2">21,454 </td><td></td><td colspan="3"></td><td colspan="2">24,226 </td><td></td></tr><tr><td colspan="3">Noncurrent deferred income taxes</td><td colspan="3"></td><td colspan="2">19,509 </td><td></td><td colspan="3"></td><td colspan="2">18,830 </td><td></td></tr><tr><td colspan="3">Noncurrent employee benefit plans</td><td colspan="3"></td><td colspan="2">3,942 </td><td></td><td colspan="3"></td><td colspan="2">4,082 </td><td></td></tr><tr><td colspan="3">Total Liabilities*</td><td colspan="3"></td><td>$</td><td>100,381 </td><td></td><td colspan="3"></td><td>$</td><td>99,703 </td><td></td></tr><tr><td colspan="3">Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023)</td><td colspan="3"></td><td colspan="2">1,832 </td><td></td><td colspan="3"></td><td colspan="2">1,832 </td><td></td></tr><tr><td colspan="3">Capital in excess of par value</td><td colspan="3"></td><td colspan="2">21,495 </td><td></td><td colspan="3"></td><td colspan="2">21,365 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">203,960 </td><td></td><td colspan="3"></td><td colspan="2">200,025 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="3"></td><td colspan="2">(2,924)</td><td></td><td colspan="3"></td><td colspan="2">(2,960)</td><td></td></tr><tr><td colspan="3">Deferred compensation and benefit plan trust</td><td colspan="3"></td><td colspan="2">(240)</td><td></td><td colspan="3"></td><td colspan="2">(240)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">(64,890)</td><td></td><td colspan="3"></td><td colspan="2">(59,065)</td><td></td></tr><tr><td colspan="3">Total Chevron Corporation Stockholders' Equity</td><td colspan="3"></td><td colspan="2">159,233 </td><td></td><td colspan="3"></td><td colspan="2">160,957 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">1,030 </td><td></td><td colspan="3"></td><td colspan="2">972 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">160,263 </td><td></td><td colspan="3"></td><td colspan="2">161,929 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">* Refer to Note 12 Other Contingencies and Commitments.</td></tr><tr><td colspan="3"></td></tr></table>See accompanying notes to consolidated financial statements. 5
q_com118
What is the percentage change in net income for ExxonMobil and Chevron for the six months ended June 30, 2024, compared to the same period in 2023?
The percentage change in net income for ExxonMobil for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Percentage Change in Net Income = (Current Period Net Income - Previous Period Net Income) / Previous Period Net Income Percentage Change in Net Income = ($18,137 million - $19,996 million) / $19,996 million = -0.093 or -9.3% The percentage change in net income for Chevron for the six months ended June 30, 2024, compared to the same period in 2023, is calculated as follows: Percentage Change in Net Income = (Current Period Net Income - Previous Period Net Income) / Previous Period Net Income Percentage Change in Net Income = ($9,994 million - $12,613 million) / $12,613 million = -0.208 or -20.8%
Comparison
3;3
0000034088-24-000050;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , PART I. FINANCIAL INFORMATION
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , PART I. FINANCIAL INFORMATION
q_com119
What is the percentage change in total assets for ExxonMobil and Chevron as of June 30, 2024, compared to December 31, 2023?
The percentage change in total assets for ExxonMobil as of June 30, 2024, compared to December 31, 2023, is calculated as follows: Percentage Change in Total Assets = (Current Period Total Assets - Previous Period Total Assets) / Previous Period Total Assets Percentage Change in Total Assets = ($460,707 million - $376,317 million) / $376,317 million = 0.224 or 22.4% The percentage change in total assets for Chevron as of June 30, 2024, compared to December 31, 2023, is calculated as follows: Percentage Change in Total Assets = (Current Period Total Assets - Previous Period Total Assets) / Previous Period Total Assets Percentage Change in Total Assets = ($260,644 million - $261,632 million) / $261,632 million = -0.004 or -0.4%
Comparison
5;5
0000034088-24-000050;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5: | | | |---:|:-------------------------------------| | 2 | CONDENSED CONSOLIDATED BALANCE SHEET | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------| | 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | | | 3 | ASSETS | | | | | 4 | Current assets | | | | | 5 | Cash and cash equivalents | 26,460 | | 31,539 | | 6 | Cash and cash equivalents – restricted | 28 | | 29 | | 7 | Notes and accounts receivable – net | 43,071 | | 38,015 | | 8 | Inventories | | | | | 9 | Crude oil, products and merchandise | 19,685 | | 20,528 | | 10 | Materials and supplies | 4,818 | | 4,592 | | 11 | Other current assets | 2,176 | | 1,906 | | 12 | Total current assets | 96,238 | | 96,609 | | 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 | | 14 | Property, plant and equipment – net | 298,283 | | 214,940 | | 15 | Other assets, including intangibles – net | 18,238 | | 17,138 | | 16 | Total Assets | 460,707 | | 376,317 | | 18 | LIABILITIES | | | | | 19 | Current liabilities | | | | | 20 | Notes and loans payable | 6,621 | | 4,090 | | 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 | | 22 | Income taxes payable | 4,035 | | 3,189 | | 23 | Total current liabilities | 70,763 | | 65,316 | | 24 | Long-term debt | 36,565 | | 37,483 | | 25 | Postretirement benefits reserves | 10,398 | | 10,496 | | 26 | Deferred income tax liabilities | 40,080 | | 24,452 | | 27 | Long-term obligations to equity companies | 1,612 | | 1,804 | | 28 | Other long-term obligations | 25,023 | | 24,228 | | 29 | Total Liabilities | 184,441 | | 163,779 | | 31 | Commitments and contingencies (Note 3) | | | | | 33 | EQUITY | | | | | 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 | | 35 | Earnings reinvested | 463,294 | | 453,927 | | 36 | Accumulated other comprehensive income | (13,187) | | (11,989) | | 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) | | 38 | ExxonMobil share of equity | 268,405 | | 204,802 | | 39 | Noncontrolling interests | 7,861 | | 7,736 | | 40 | Total Equity | 276,266 | | 212,538 | | 41 | Total Liabilities and Equity | 460,707 | | 376,317 | | 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | 5 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 5: CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------|:----------------------|:--------|:--------------------|:---------|:---|:--------| | 1 | | At June 30,2024 | | At December 31,2023 | | | | | 2 | | (Millions of dollars) | | | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 4,008 | | | $ | 8,178 | | 6 | Marketable securities | - | | | 45 | | | | 7 | Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301) | 20,752 | | | 19,921 | | | | 8 | Inventories: | | | | | | | | 9 | Crude oil and products | 7,662 | | | 6,059 | | | | 10 | Chemicals | 426 | | | 406 | | | | 11 | Materials, supplies and other | 2,389 | | | 2,147 | | | | 12 | Total inventories | 10,477 | | | 8,612 | | | | 13 | Prepaid expenses and other current assets | 4,132 | | | 4,372 | | | | 14 | Total Current Assets | 39,369 | | | 41,128 | | | | 15 | Long-term receivables (less allowance: 2024 - $353; 2023 - $340) | 974 | | | 942 | | | | 16 | Investments and advances | 47,654 | | | 46,812 | | | | 17 | Properties, plant and equipment, at cost | 349,859 | | | 346,081 | | | | 18 | Less: Accumulated depreciation, depletion and amortization | 196,856 | | | 192,462 | | | | 19 | Properties, plant and equipment, net | 153,003 | | | 153,619 | | | | 20 | Deferred charges and other assets | 13,913 | | | 13,734 | | | | 21 | Goodwill | 4,722 | | | 4,722 | | | | 22 | Assets held for sale | 1,009 | | | 675 | | | | 23 | Total Assets | $ | 260,644 | | | $ | 261,632 | | 24 | Liabilities and Equity | | | | | | | | 25 | Short-term debt | $ | 1,735 | | | $ | 529 | | 26 | Accounts payable | 21,007 | | | 20,423 | | | | 27 | Accrued liabilities | 9,054 | | | 7,655 | | | | 28 | Federal and other taxes on income | 893 | | | 1,863 | | | | 29 | Other taxes payable | 1,338 | | | 1,788 | | | | 30 | Total Current Liabilities | 34,027 | | | 32,258 | | | | 31 | Long-term debt | 21,449 | | | 20,307 | | | | 33 | Deferred credits and other noncurrent obligations | 21,454 | | | 24,226 | | | | 34 | Noncurrent deferred income taxes | 19,509 | | | 18,830 | | | | 35 | Noncurrent employee benefit plans | 3,942 | | | 4,082 | | | | 36 | Total Liabilities* | $ | 100,381 | | | $ | 99,703 | | 37 | Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) | - | | | - | | | | 38 | Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023) | 1,832 | | | 1,832 | | | | 39 | Capital in excess of par value | 21,495 | | | 21,365 | | | | 40 | Retained earnings | 203,960 | | | 200,025 | | | | 41 | Accumulated other comprehensive losses | (2,924) | | | (2,960) | | | | 42 | Deferred compensation and benefit plan trust | (240) | | | (240) | | | | 43 | Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively) | (64,890) | | | (59,065) | | | | 44 | Total Chevron Corporation Stockholders' Equity | 159,233 | | | 160,957 | | | | 45 | Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively) | 1,030 | | | 972 | | | | 46 | Total Equity | 160,263 | | | 161,929 | | | | 47 | Total Liabilities and Equity | $ | 260,644 | | | $ | 261,632 | | 49 | * Refer to Note 12 Other Contingencies and Commitments. | | | | | | | See accompanying notes to consolidated financial statements. 5
| | | |---:|:-------------------------------------| | 2 | CONDENSED CONSOLIDATED BALANCE SHEET | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:--------------|:------------------|:----------| | 1 | (millions of dollars, unless noted) | June 30, 2024 | December 31, 2023 | | | 3 | ASSETS | | | | | 4 | Current assets | | | | | 5 | Cash and cash equivalents | 26,460 | | 31,539 | | 6 | Cash and cash equivalents – restricted | 28 | | 29 | | 7 | Notes and accounts receivable – net | 43,071 | | 38,015 | | 8 | Inventories | | | | | 9 | Crude oil, products and merchandise | 19,685 | | 20,528 | | 10 | Materials and supplies | 4,818 | | 4,592 | | 11 | Other current assets | 2,176 | | 1,906 | | 12 | Total current assets | 96,238 | | 96,609 | | 13 | Investments, advances and long-term receivables | 47,948 | | 47,630 | | 14 | Property, plant and equipment – net | 298,283 | | 214,940 | | 15 | Other assets, including intangibles – net | 18,238 | | 17,138 | | 16 | Total Assets | 460,707 | | 376,317 | | 18 | LIABILITIES | | | | | 19 | Current liabilities | | | | | 20 | Notes and loans payable | 6,621 | | 4,090 | | 21 | Accounts payable and accrued liabilities | 60,107 | | 58,037 | | 22 | Income taxes payable | 4,035 | | 3,189 | | 23 | Total current liabilities | 70,763 | | 65,316 | | 24 | Long-term debt | 36,565 | | 37,483 | | 25 | Postretirement benefits reserves | 10,398 | | 10,496 | | 26 | Deferred income tax liabilities | 40,080 | | 24,452 | | 27 | Long-term obligations to equity companies | 1,612 | | 1,804 | | 28 | Other long-term obligations | 25,023 | | 24,228 | | 29 | Total Liabilities | 184,441 | | 163,779 | | 31 | Commitments and contingencies (Note 3) | | | | | 33 | EQUITY | | | | | 34 | Common stock without par value (9,000 million shares authorized, 8,019 million shares issued) | 46,781 | | 17,781 | | 35 | Earnings reinvested | 463,294 | | 453,927 | | 36 | Accumulated other comprehensive income | (13,187) | | (11,989) | | 37 | Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023) | (228,483) | | (254,917) | | 38 | ExxonMobil share of equity | 268,405 | | 204,802 | | 39 | Noncontrolling interests | 7,861 | | 7,736 | | 40 | Total Equity | 276,266 | | 212,538 | | 41 | Total Liabilities and Equity | 460,707 | | 376,317 | | 43 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | 5 , CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------|:----------------------|:--------|:--------------------|:---------|:---|:--------| | 1 | | At June 30,2024 | | At December 31,2023 | | | | | 2 | | (Millions of dollars) | | | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 4,008 | | | $ | 8,178 | | 6 | Marketable securities | - | | | 45 | | | | 7 | Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301) | 20,752 | | | 19,921 | | | | 8 | Inventories: | | | | | | | | 9 | Crude oil and products | 7,662 | | | 6,059 | | | | 10 | Chemicals | 426 | | | 406 | | | | 11 | Materials, supplies and other | 2,389 | | | 2,147 | | | | 12 | Total inventories | 10,477 | | | 8,612 | | | | 13 | Prepaid expenses and other current assets | 4,132 | | | 4,372 | | | | 14 | Total Current Assets | 39,369 | | | 41,128 | | | | 15 | Long-term receivables (less allowance: 2024 - $353; 2023 - $340) | 974 | | | 942 | | | | 16 | Investments and advances | 47,654 | | | 46,812 | | | | 17 | Properties, plant and equipment, at cost | 349,859 | | | 346,081 | | | | 18 | Less: Accumulated depreciation, depletion and amortization | 196,856 | | | 192,462 | | | | 19 | Properties, plant and equipment, net | 153,003 | | | 153,619 | | | | 20 | Deferred charges and other assets | 13,913 | | | 13,734 | | | | 21 | Goodwill | 4,722 | | | 4,722 | | | | 22 | Assets held for sale | 1,009 | | | 675 | | | | 23 | Total Assets | $ | 260,644 | | | $ | 261,632 | | 24 | Liabilities and Equity | | | | | | | | 25 | Short-term debt | $ | 1,735 | | | $ | 529 | | 26 | Accounts payable | 21,007 | | | 20,423 | | | | 27 | Accrued liabilities | 9,054 | | | 7,655 | | | | 28 | Federal and other taxes on income | 893 | | | 1,863 | | | | 29 | Other taxes payable | 1,338 | | | 1,788 | | | | 30 | Total Current Liabilities | 34,027 | | | 32,258 | | | | 31 | Long-term debt | 21,449 | | | 20,307 | | | | 33 | Deferred credits and other noncurrent obligations | 21,454 | | | 24,226 | | | | 34 | Noncurrent deferred income taxes | 19,509 | | | 18,830 | | | | 35 | Noncurrent employee benefit plans | 3,942 | | | 4,082 | | | | 36 | Total Liabilities* | $ | 100,381 | | | $ | 99,703 | | 37 | Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued) | - | | | - | | | | 38 | Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023) | 1,832 | | | 1,832 | | | | 39 | Capital in excess of par value | 21,495 | | | 21,365 | | | | 40 | Retained earnings | 203,960 | | | 200,025 | | | | 41 | Accumulated other comprehensive losses | (2,924) | | | (2,960) | | | | 42 | Deferred compensation and benefit plan trust | (240) | | | (240) | | | | 43 | Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively) | (64,890) | | | (59,065) | | | | 44 | Total Chevron Corporation Stockholders' Equity | 159,233 | | | 160,957 | | | | 45 | Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively) | 1,030 | | | 972 | | | | 46 | Total Equity | 160,263 | | | 161,929 | | | | 47 | Total Liabilities and Equity | $ | 260,644 | | | $ | 261,632 | | 49 | * Refer to Note 12 Other Contingencies and Commitments. | | | | | | | See accompanying notes to consolidated financial statements. 5
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 5: <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 5: CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">At June 30,2024</td><td colspan="3"></td><td colspan="3">At December 31,2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Millions of dollars)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td>4,008 </td><td></td><td colspan="3"></td><td>$</td><td>8,178 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301)</td><td colspan="3"></td><td colspan="2">20,752 </td><td></td><td colspan="3"></td><td colspan="2">19,921 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and products</td><td colspan="3"></td><td colspan="2">7,662 </td><td></td><td colspan="3"></td><td colspan="2">6,059 </td><td></td></tr><tr><td colspan="3">Chemicals</td><td colspan="3"></td><td colspan="2">426 </td><td></td><td colspan="3"></td><td colspan="2">406 </td><td></td></tr><tr><td colspan="3">Materials, supplies and other</td><td colspan="3"></td><td colspan="2">2,389 </td><td></td><td colspan="3"></td><td colspan="2">2,147 </td><td></td></tr><tr><td colspan="3">Total inventories</td><td colspan="3"></td><td colspan="2">10,477 </td><td></td><td colspan="3"></td><td colspan="2">8,612 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="3"></td><td colspan="2">4,132 </td><td></td><td colspan="3"></td><td colspan="2">4,372 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="3"></td><td colspan="2">39,369 </td><td></td><td colspan="3"></td><td colspan="2">41,128 </td><td></td></tr><tr><td colspan="3">Long-term receivables (less allowance: 2024 - $353; 2023 - $340)</td><td colspan="3"></td><td colspan="2">974 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td></tr><tr><td colspan="3">Investments and advances</td><td colspan="3"></td><td colspan="2">47,654 </td><td></td><td colspan="3"></td><td colspan="2">46,812 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, at cost</td><td colspan="3"></td><td colspan="2">349,859 </td><td></td><td colspan="3"></td><td colspan="2">346,081 </td><td></td></tr><tr><td colspan="3">Less: Accumulated depreciation, depletion and amortization</td><td colspan="3"></td><td colspan="2">196,856 </td><td></td><td colspan="3"></td><td colspan="2">192,462 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, net</td><td colspan="3"></td><td colspan="2">153,003 </td><td></td><td colspan="3"></td><td colspan="2">153,619 </td><td></td></tr><tr><td colspan="3">Deferred charges and other assets</td><td colspan="3"></td><td colspan="2">13,913 </td><td></td><td colspan="3"></td><td colspan="2">13,734 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="3"></td><td colspan="2">4,722 </td><td></td><td colspan="3"></td><td colspan="2">4,722 </td><td></td></tr><tr><td colspan="3">Assets held for sale</td><td colspan="3"></td><td colspan="2">1,009 </td><td></td><td colspan="3"></td><td colspan="2">675 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3">Liabilities and Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short-term debt </td><td colspan="3"></td><td>$</td><td>1,735 </td><td></td><td colspan="3"></td><td>$</td><td>529 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">21,007 </td><td></td><td colspan="3"></td><td colspan="2">20,423 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="3"></td><td colspan="2">9,054 </td><td></td><td colspan="3"></td><td colspan="2">7,655 </td><td></td></tr><tr><td colspan="3">Federal and other taxes on income</td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">1,863 </td><td></td></tr><tr><td colspan="3">Other taxes payable</td><td colspan="3"></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">1,788 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="3"></td><td colspan="2">34,027 </td><td></td><td colspan="3"></td><td colspan="2">32,258 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">21,449 </td><td></td><td colspan="3"></td><td colspan="2">20,307 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred credits and other noncurrent obligations</td><td colspan="3"></td><td colspan="2">21,454 </td><td></td><td colspan="3"></td><td colspan="2">24,226 </td><td></td></tr><tr><td colspan="3">Noncurrent deferred income taxes</td><td colspan="3"></td><td colspan="2">19,509 </td><td></td><td colspan="3"></td><td colspan="2">18,830 </td><td></td></tr><tr><td colspan="3">Noncurrent employee benefit plans</td><td colspan="3"></td><td colspan="2">3,942 </td><td></td><td colspan="3"></td><td colspan="2">4,082 </td><td></td></tr><tr><td colspan="3">Total Liabilities*</td><td colspan="3"></td><td>$</td><td>100,381 </td><td></td><td colspan="3"></td><td>$</td><td>99,703 </td><td></td></tr><tr><td colspan="3">Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023)</td><td colspan="3"></td><td colspan="2">1,832 </td><td></td><td colspan="3"></td><td colspan="2">1,832 </td><td></td></tr><tr><td colspan="3">Capital in excess of par value</td><td colspan="3"></td><td colspan="2">21,495 </td><td></td><td colspan="3"></td><td colspan="2">21,365 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">203,960 </td><td></td><td colspan="3"></td><td colspan="2">200,025 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="3"></td><td colspan="2">(2,924)</td><td></td><td colspan="3"></td><td colspan="2">(2,960)</td><td></td></tr><tr><td colspan="3">Deferred compensation and benefit plan trust</td><td colspan="3"></td><td colspan="2">(240)</td><td></td><td colspan="3"></td><td colspan="2">(240)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">(64,890)</td><td></td><td colspan="3"></td><td colspan="2">(59,065)</td><td></td></tr><tr><td colspan="3">Total Chevron Corporation Stockholders' Equity</td><td colspan="3"></td><td colspan="2">159,233 </td><td></td><td colspan="3"></td><td colspan="2">160,957 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">1,030 </td><td></td><td colspan="3"></td><td colspan="2">972 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">160,263 </td><td></td><td colspan="3"></td><td colspan="2">161,929 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">* Refer to Note 12 Other Contingencies and Commitments.</td></tr><tr><td colspan="3"></td></tr></table>See accompanying notes to consolidated financial statements. 5
<table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED BALANCE SHEET</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td colspan="3"></td><td></td><td></td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">(millions of dollars, unless noted)</td><td colspan="3"></td><td colspan="3">June 30, 2024</td><td colspan="3"></td><td colspan="3">December 31, 2023</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ASSETS</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current assets</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="2">26,460 </td><td></td><td colspan="3"></td><td colspan="2">31,539 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents – restricted</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">29 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and accounts receivable – net</td><td colspan="3"></td><td colspan="2">43,071 </td><td></td><td colspan="3"></td><td colspan="2">38,015 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Inventories</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil, products and merchandise</td><td colspan="3"></td><td colspan="2">19,685 </td><td></td><td colspan="3"></td><td colspan="2">20,528 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Materials and supplies</td><td colspan="3"></td><td colspan="2">4,818 </td><td></td><td colspan="3"></td><td colspan="2">4,592 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other current assets</td><td colspan="3"></td><td colspan="2">2,176 </td><td></td><td colspan="3"></td><td colspan="2">1,906 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current assets</td><td colspan="3"></td><td colspan="2">96,238 </td><td></td><td colspan="3"></td><td colspan="2">96,609 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investments, advances and long-term receivables</td><td colspan="3"></td><td colspan="2">47,948 </td><td></td><td colspan="3"></td><td colspan="2">47,630 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Property, plant and equipment – net</td><td colspan="3"></td><td colspan="2">298,283 </td><td></td><td colspan="3"></td><td colspan="2">214,940 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets, including intangibles – net</td><td colspan="3"></td><td colspan="2">18,238 </td><td></td><td colspan="3"></td><td colspan="2">17,138 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">LIABILITIES</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Current liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Notes and loans payable</td><td colspan="3"></td><td colspan="2">6,621 </td><td></td><td colspan="3"></td><td colspan="2">4,090 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accounts payable and accrued liabilities</td><td colspan="3"></td><td colspan="2">60,107 </td><td></td><td colspan="3"></td><td colspan="2">58,037 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income taxes payable</td><td colspan="3"></td><td colspan="2">4,035 </td><td></td><td colspan="3"></td><td colspan="2">3,189 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total current liabilities</td><td colspan="3"></td><td colspan="2">70,763 </td><td></td><td colspan="3"></td><td colspan="2">65,316 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">36,565 </td><td></td><td colspan="3"></td><td colspan="2">37,483 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Postretirement benefits reserves</td><td colspan="3"></td><td colspan="2">10,398 </td><td></td><td colspan="3"></td><td colspan="2">10,496 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred income tax liabilities</td><td colspan="3"></td><td colspan="2">40,080 </td><td></td><td colspan="3"></td><td colspan="2">24,452 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Long-term obligations to equity companies</td><td colspan="3"></td><td colspan="2">1,612 </td><td></td><td colspan="3"></td><td colspan="2">1,804 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other long-term obligations</td><td colspan="3"></td><td colspan="2">25,023 </td><td></td><td colspan="3"></td><td colspan="2">24,228 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities</td><td colspan="3"></td><td colspan="2">184,441 </td><td></td><td colspan="3"></td><td colspan="2">163,779 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Commitments and contingencies (Note 3)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">EQUITY</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock without par value (9,000 million shares authorized, 8,019 million shares issued)</td><td colspan="3"></td><td colspan="2">46,781 </td><td></td><td colspan="3"></td><td colspan="2">17,781 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings reinvested</td><td colspan="3"></td><td colspan="2">463,294 </td><td></td><td colspan="3"></td><td colspan="2">453,927 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Accumulated other comprehensive income</td><td colspan="3"></td><td colspan="2">(13,187)</td><td></td><td colspan="3"></td><td colspan="2">(11,989)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock held in treasury (3,576 million shares at June 30, 2024 and4,048 million shares at December 31, 2023)</td><td colspan="3"></td><td colspan="2">(228,483)</td><td></td><td colspan="3"></td><td colspan="2">(254,917)</td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">ExxonMobil share of equity</td><td colspan="3"></td><td colspan="2">268,405 </td><td></td><td colspan="3"></td><td colspan="2">204,802 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noncontrolling interests</td><td colspan="3"></td><td colspan="2">7,861 </td><td></td><td colspan="3"></td><td colspan="2">7,736 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">276,266 </td><td></td><td colspan="3"></td><td colspan="2">212,538 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td colspan="2">460,707 </td><td></td><td colspan="3"></td><td colspan="2">376,317 </td><td></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="12">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>5 , CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3">At June 30,2024</td><td colspan="3"></td><td colspan="3">At December 31,2023</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="9">(Millions of dollars)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td>$</td><td>4,008 </td><td></td><td colspan="3"></td><td>$</td><td>8,178 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Marketable securities</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">45 </td><td></td></tr><tr><td colspan="3">Accounts and notes receivable (less allowance: 2024 - $266; 2023 - $301)</td><td colspan="3"></td><td colspan="2">20,752 </td><td></td><td colspan="3"></td><td colspan="2">19,921 </td><td></td></tr><tr><td colspan="3">Inventories:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and products</td><td colspan="3"></td><td colspan="2">7,662 </td><td></td><td colspan="3"></td><td colspan="2">6,059 </td><td></td></tr><tr><td colspan="3">Chemicals</td><td colspan="3"></td><td colspan="2">426 </td><td></td><td colspan="3"></td><td colspan="2">406 </td><td></td></tr><tr><td colspan="3">Materials, supplies and other</td><td colspan="3"></td><td colspan="2">2,389 </td><td></td><td colspan="3"></td><td colspan="2">2,147 </td><td></td></tr><tr><td colspan="3">Total inventories</td><td colspan="3"></td><td colspan="2">10,477 </td><td></td><td colspan="3"></td><td colspan="2">8,612 </td><td></td></tr><tr><td colspan="3">Prepaid expenses and other current assets</td><td colspan="3"></td><td colspan="2">4,132 </td><td></td><td colspan="3"></td><td colspan="2">4,372 </td><td></td></tr><tr><td colspan="3">Total Current Assets</td><td colspan="3"></td><td colspan="2">39,369 </td><td></td><td colspan="3"></td><td colspan="2">41,128 </td><td></td></tr><tr><td colspan="3">Long-term receivables (less allowance: 2024 - $353; 2023 - $340)</td><td colspan="3"></td><td colspan="2">974 </td><td></td><td colspan="3"></td><td colspan="2">942 </td><td></td></tr><tr><td colspan="3">Investments and advances</td><td colspan="3"></td><td colspan="2">47,654 </td><td></td><td colspan="3"></td><td colspan="2">46,812 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, at cost</td><td colspan="3"></td><td colspan="2">349,859 </td><td></td><td colspan="3"></td><td colspan="2">346,081 </td><td></td></tr><tr><td colspan="3">Less: Accumulated depreciation, depletion and amortization</td><td colspan="3"></td><td colspan="2">196,856 </td><td></td><td colspan="3"></td><td colspan="2">192,462 </td><td></td></tr><tr><td colspan="3">Properties, plant and equipment, net</td><td colspan="3"></td><td colspan="2">153,003 </td><td></td><td colspan="3"></td><td colspan="2">153,619 </td><td></td></tr><tr><td colspan="3">Deferred charges and other assets</td><td colspan="3"></td><td colspan="2">13,913 </td><td></td><td colspan="3"></td><td colspan="2">13,734 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="3"></td><td colspan="2">4,722 </td><td></td><td colspan="3"></td><td colspan="2">4,722 </td><td></td></tr><tr><td colspan="3">Assets held for sale</td><td colspan="3"></td><td colspan="2">1,009 </td><td></td><td colspan="3"></td><td colspan="2">675 </td><td></td></tr><tr><td colspan="3">Total Assets</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3">Liabilities and Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short-term debt </td><td colspan="3"></td><td>$</td><td>1,735 </td><td></td><td colspan="3"></td><td>$</td><td>529 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">21,007 </td><td></td><td colspan="3"></td><td colspan="2">20,423 </td><td></td></tr><tr><td colspan="3">Accrued liabilities</td><td colspan="3"></td><td colspan="2">9,054 </td><td></td><td colspan="3"></td><td colspan="2">7,655 </td><td></td></tr><tr><td colspan="3">Federal and other taxes on income</td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">1,863 </td><td></td></tr><tr><td colspan="3">Other taxes payable</td><td colspan="3"></td><td colspan="2">1,338 </td><td></td><td colspan="3"></td><td colspan="2">1,788 </td><td></td></tr><tr><td colspan="3">Total Current Liabilities</td><td colspan="3"></td><td colspan="2">34,027 </td><td></td><td colspan="3"></td><td colspan="2">32,258 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="3"></td><td colspan="2">21,449 </td><td></td><td colspan="3"></td><td colspan="2">20,307 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deferred credits and other noncurrent obligations</td><td colspan="3"></td><td colspan="2">21,454 </td><td></td><td colspan="3"></td><td colspan="2">24,226 </td><td></td></tr><tr><td colspan="3">Noncurrent deferred income taxes</td><td colspan="3"></td><td colspan="2">19,509 </td><td></td><td colspan="3"></td><td colspan="2">18,830 </td><td></td></tr><tr><td colspan="3">Noncurrent employee benefit plans</td><td colspan="3"></td><td colspan="2">3,942 </td><td></td><td colspan="3"></td><td colspan="2">4,082 </td><td></td></tr><tr><td colspan="3">Total Liabilities*</td><td colspan="3"></td><td>$</td><td>100,381 </td><td></td><td colspan="3"></td><td>$</td><td>99,703 </td><td></td></tr><tr><td colspan="3">Preferred stock (authorized 100,000,000 shares; $1.00 par value; none issued)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common stock (authorized 6,000,000,000 shares, $0.75 par value; 2,442,676,580 shares issued at June 30, 2024 and December 31, 2023)</td><td colspan="3"></td><td colspan="2">1,832 </td><td></td><td colspan="3"></td><td colspan="2">1,832 </td><td></td></tr><tr><td colspan="3">Capital in excess of par value</td><td colspan="3"></td><td colspan="2">21,495 </td><td></td><td colspan="3"></td><td colspan="2">21,365 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">203,960 </td><td></td><td colspan="3"></td><td colspan="2">200,025 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive losses</td><td colspan="3"></td><td colspan="2">(2,924)</td><td></td><td colspan="3"></td><td colspan="2">(2,960)</td><td></td></tr><tr><td colspan="3">Deferred compensation and benefit plan trust</td><td colspan="3"></td><td colspan="2">(240)</td><td></td><td colspan="3"></td><td colspan="2">(240)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost (613,759,467 and 577,028,776 shares at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">(64,890)</td><td></td><td colspan="3"></td><td colspan="2">(59,065)</td><td></td></tr><tr><td colspan="3">Total Chevron Corporation Stockholders' Equity</td><td colspan="3"></td><td colspan="2">159,233 </td><td></td><td colspan="3"></td><td colspan="2">160,957 </td><td></td></tr><tr><td colspan="3">Noncontrolling interests (includes redeemable noncontrolling interest of $177 and $166 at June 30, 2024 and December 31, 2023, respectively)</td><td colspan="3"></td><td colspan="2">1,030 </td><td></td><td colspan="3"></td><td colspan="2">972 </td><td></td></tr><tr><td colspan="3">Total Equity</td><td colspan="3"></td><td colspan="2">160,263 </td><td></td><td colspan="3"></td><td colspan="2">161,929 </td><td></td></tr><tr><td colspan="3">Total Liabilities and Equity</td><td colspan="3"></td><td>$</td><td>260,644 </td><td></td><td colspan="3"></td><td>$</td><td>261,632 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="15">* Refer to Note 12 Other Contingencies and Commitments.</td></tr><tr><td colspan="3"></td></tr></table>See accompanying notes to consolidated financial statements. 5
q_com120
What are the production and manufacturing expenses for ExxonMobil and Chevron for the six months ended June 30, 2024?
ExxonMobil's production and manufacturing expenses for the six months ended June 30, 2024, are $18,895 million. Chevron's operating expenses for the same period are $13,147 million.
Comparison
3;3
0000034088-24-000050;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , PART I. FINANCIAL INFORMATION
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , PART I. FINANCIAL INFORMATION
q_com121
What are the depreciation and depletion expenses for ExxonMobil and Chevron for the six months ended June 30, 2024?
ExxonMobil's depreciation and depletion expenses for the six months ended June 30, 2024, are $10,599 million. Chevron's depreciation, depletion, and amortization expenses for the same period are $8,095 million.
Comparison
3;3
0000034088-24-000050;0000093410-24-000040
Item 1. Financial Statements;Item 1.Consolidated Financial Statements
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION | | | |---:|:-----------------------------| | 1 | ITEM 1. FINANCIAL STATEMENTS | | | | |---:|:-------------------------------------------| | 2 | CONDENSED CONSOLIDATED STATEMENT OF INCOME | | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------|:-----|:---------------------------|:-----|:-------------------------|:--------|:--------| | 1 | (millions of dollars, unless noted) | | Three Months EndedJune 30, | | Six Months EndedJune 30, | | | | 2 | 2024 | 2023 | | 2024 | 2023 | | | | 3 | Revenues and other income | | | | | | | | 4 | Sales and other operating revenue | | 89,986 | | 80,795 | 170,397 | 164,439 | | 5 | Income from equity affiliates | | 1,744 | | 1,382 | 3,586 | 3,763 | | 6 | Other income | | 1,330 | | 737 | 2,160 | 1,276 | | 7 | Total revenues and other income | | 93,060 | | 82,914 | 176,143 | 169,478 | | 8 | Costs and other deductions | | | | | | | | 9 | Crude oil and product purchases | | 54,199 | | 47,598 | 101,800 | 93,601 | | 10 | Production and manufacturing expenses | | 9,804 | | 8,860 | 18,895 | 18,296 | | 11 | Selling, general and administrative expenses | | 2,568 | | 2,449 | 5,063 | 4,839 | | 12 | Depreciation and depletion (includes impairments) | | 5,787 | | 4,242 | 10,599 | 8,486 | | 13 | Exploration expenses, including dry holes | | 153 | | 133 | 301 | 274 | | 14 | Non-service pension and postretirement benefit expense | | 34 | | 164 | 57 | 331 | | 15 | Interest expense | | 271 | | 249 | 492 | 408 | | 16 | Other taxes and duties | | 6,579 | | 7,563 | 12,902 | 14,784 | | 17 | Total costs and other deductions | | 79,395 | | 71,258 | 150,109 | 141,019 | | 18 | Income (loss) before income taxes | | 13,665 | | 11,656 | 26,034 | 28,459 | | 19 | Income tax expense (benefit) | | 4,094 | | 3,503 | 7,897 | 8,463 | | 20 | Net income (loss) including noncontrolling interests | | 9,571 | | 8,153 | 18,137 | 19,996 | | 21 | Net income (loss) attributable to noncontrolling interests | | 331 | | 273 | 677 | 686 | | 22 | Net income (loss) attributable to ExxonMobil | | 9,240 | | 7,880 | 17,460 | 19,310 | | 24 | Earnings (loss) per common share (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 26 | Earnings (loss) per common share - assuming dilution (dollars) | | 2.14 | | 1.94 | 4.20 | 4.73 | | 28 | The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. | | | | | | | 3 , PART I. FINANCIAL INFORMATION
EXXON MOBIL CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , CHEVRON CORP 10-Q form for quarterly period ended 2024-06-30, page 3: PART I. FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="9">ITEM 1. FINANCIAL STATEMENTS</td><td colspan="3"></td><td colspan="3"></td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="6">CONDENSED CONSOLIDATED STATEMENT OF INCOME</td></tr></table> <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3" rowspan="2">(millions of dollars, unless noted)</td><td colspan="3" rowspan="2"></td><td colspan="6">Three Months EndedJune 30,</td><td colspan="3"></td><td colspan="6">Six Months EndedJune 30,</td></tr><tr><td colspan="3">2024</td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues and other income</td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sales and other operating revenue</td><td colspan="3"></td><td colspan="2">89,986 </td><td></td><td colspan="2">80,795 </td><td></td><td colspan="3"></td><td colspan="2">170,397 </td><td></td><td colspan="2">164,439 </td><td></td></tr><tr><td colspan="3">Income from equity affiliates</td><td colspan="3"></td><td colspan="2">1,744 </td><td></td><td colspan="2">1,382 </td><td></td><td colspan="3"></td><td colspan="2">3,586 </td><td></td><td colspan="2">3,763 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="2">1,330 </td><td></td><td colspan="2">737 </td><td></td><td colspan="3"></td><td colspan="2">2,160 </td><td></td><td colspan="2">1,276 </td><td></td></tr><tr><td colspan="3">Total revenues and other income</td><td colspan="3"></td><td colspan="2">93,060 </td><td></td><td colspan="2">82,914 </td><td></td><td colspan="3"></td><td colspan="2">176,143 </td><td></td><td colspan="2">169,478 </td><td></td></tr><tr><td colspan="3">Costs and other deductions</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Crude oil and product purchases</td><td colspan="3"></td><td colspan="2">54,199 </td><td></td><td colspan="2">47,598 </td><td></td><td colspan="3"></td><td colspan="2">101,800 </td><td></td><td colspan="2">93,601 </td><td></td></tr><tr><td colspan="3">Production and manufacturing expenses</td><td colspan="3"></td><td colspan="2">9,804 </td><td></td><td colspan="2">8,860 </td><td></td><td colspan="3"></td><td colspan="2">18,895 </td><td></td><td colspan="2">18,296 </td><td></td></tr><tr><td colspan="3">Selling, general and administrative expenses</td><td colspan="3"></td><td colspan="2">2,568 </td><td></td><td colspan="2">2,449 </td><td></td><td colspan="3"></td><td colspan="2">5,063 </td><td></td><td colspan="2">4,839 </td><td></td></tr><tr><td colspan="3">Depreciation and depletion (includes impairments)</td><td colspan="3"></td><td colspan="2">5,787 </td><td></td><td colspan="2">4,242 </td><td></td><td colspan="3"></td><td colspan="2">10,599 </td><td></td><td colspan="2">8,486 </td><td></td></tr><tr><td colspan="3">Exploration expenses, including dry holes</td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="2">133 </td><td></td><td colspan="3"></td><td colspan="2">301 </td><td></td><td colspan="2">274 </td><td></td></tr><tr><td colspan="3">Non-service pension and postretirement benefit expense</td><td colspan="3"></td><td colspan="2">34 </td><td></td><td colspan="2">164 </td><td></td><td colspan="3"></td><td colspan="2">57 </td><td></td><td colspan="2">331 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="2">271 </td><td></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">492 </td><td></td><td colspan="2">408 </td><td></td></tr><tr><td colspan="3">Other taxes and duties</td><td colspan="3"></td><td colspan="2">6,579 </td><td></td><td colspan="2">7,563 </td><td></td><td colspan="3"></td><td colspan="2">12,902 </td><td></td><td colspan="2">14,784 </td><td></td></tr><tr><td colspan="3">Total costs and other deductions</td><td colspan="3"></td><td colspan="2">79,395 </td><td></td><td colspan="2">71,258 </td><td></td><td colspan="3"></td><td colspan="2">150,109 </td><td></td><td colspan="2">141,019 </td><td></td></tr><tr><td colspan="3">Income (loss) before income taxes</td><td colspan="3"></td><td colspan="2">13,665 </td><td></td><td colspan="2">11,656 </td><td></td><td colspan="3"></td><td colspan="2">26,034 </td><td></td><td colspan="2">28,459 </td><td></td></tr><tr><td colspan="3">Income tax expense (benefit)</td><td colspan="3"></td><td colspan="2">4,094 </td><td></td><td colspan="2">3,503 </td><td></td><td colspan="3"></td><td colspan="2">7,897 </td><td></td><td colspan="2">8,463 </td><td></td></tr><tr><td colspan="3">Net income (loss) including noncontrolling interests</td><td colspan="3"></td><td colspan="2">9,571 </td><td></td><td colspan="2">8,153 </td><td></td><td colspan="3"></td><td colspan="2">18,137 </td><td></td><td colspan="2">19,996 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to noncontrolling interests</td><td colspan="3"></td><td colspan="2">331 </td><td></td><td colspan="2">273 </td><td></td><td colspan="3"></td><td colspan="2">677 </td><td></td><td colspan="2">686 </td><td></td></tr><tr><td colspan="3">Net income (loss) attributable to ExxonMobil</td><td colspan="3"></td><td colspan="2">9,240 </td><td></td><td colspan="2">7,880 </td><td></td><td colspan="3"></td><td colspan="2">17,460 </td><td></td><td colspan="2">19,310 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings (loss) per common share - assuming dilution (dollars)</td><td colspan="3"></td><td colspan="2">2.14 </td><td></td><td colspan="2">1.94 </td><td></td><td colspan="3"></td><td colspan="2">4.20 </td><td></td><td colspan="2">4.73 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="21">The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.</td></tr></table>3 , PART I. FINANCIAL INFORMATION
q_com122
Compare the Revenue growth rates for FY 2021-2023 for American Express and Discover Finanical Services
Revenue Growth Comparison: American Express vs. Discover Financial Services For the year 2021-2023, American Express has exhibited strong and consistent revenue growth. In 2023, the company's total revenues, net of interest expense, reached $60.5 billion, marking a substantial 14.7% increase from $52.9 billion in 2022. This follows a remarkable 24.7% growth from $42.4 billion in 2021. In contrast, Discover Financial Services has experienced more modest revenue growth. For 2023, the company reported total revenues of $20.3 billion, which represents a 4.8% increase from $19.4 billion in 2022. This follows an 8.7% growth from $17.8 billion in 2021.
Comparison
94,95,96,97,98;85,86,87,88,89
0000004962-24-000013;0001393612-24-000010
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA;Item 8. Financial Statements and Supplementary Data
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 95: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:-----|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | Year Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 3 | Other comprehensive income (loss): | | | | | | | | | | | 4 | Net unrealized debt securities gains (losses), net of tax | | | | (87) | | | (42) | | | | 5 | Foreign currency translation adjustments, net of hedges and tax | | | | (230) | | | (163) | | | | 6 | Net unrealized pension and other postretirement benefits, net of tax | 37 | | | 52 | | | 155 | | | | 7 | Other comprehensive income (loss) | 138 | | | (265) | | | (50) | | | | 8 | Comprehensive income | $ | 8,512 | | | $ | 7,249 | | $ | 8,010 | See Notes to Consolidated Financial Statements. 95 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 98: CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------------|:--------|:-------|:-----------------|:---|:--------------|:---|:---------------------------|:----------------------------------------------|:--------|:------------------|:--------|:-------|:--------|:---|:--------|:---|:-------| | 1 | (Millions, except per share amounts) | Total | | Preferred Shares | | Common Shares | | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | | Retained Earnings | | | | | | | | | 2 | Balances as of December 31, 2020 | $ | 22,984 | | | $ | - | | $ | 161 | | $ | 11,881 | | $ | (2,895) | $ | 13,837 | | 4 | Net income | 8,060 | | | - | | | - | | - | | - | | 8,060 | | | | | | 5 | Other comprehensive loss | (50) | | | - | | | - | | - | | (50) | | - | | | | | | 6 | Preferred shares issued | 1,584 | | | - | | | - | | 1,584 | | - | | - | | | | | | 7 | Redemption of preferred shares | (1,600) | | | - | | | - | | (1,584) | | - | | (16) | | | | | | 8 | Repurchase of common shares | (7,598) | | | - | | | (9) | | (631) | | - | | (6,958) | | | | | | 9 | Other changes, primarily employee plans | 227 | | | - | | | 1 | | 245 | | - | | (19) | | | | | | 10 | Cash dividends declared preferred Series B, $36,419.41 per share | (27) | | | - | | | - | | - | | - | | (27) | | | | | | 11 | Cash dividends declared preferred Series C, $26,317.47 per share | (23) | | | - | | | - | | - | | - | | (23) | | | | | | 12 | Cash dividends declared preferred Series D, $13,213.89 per share | (21) | | | - | | | - | | - | | - | | (21) | | | | | | 13 | Cash dividends declared common, $1.72 per share | (1,359) | | | - | | | - | | - | | - | | (1,359) | | | | | | 14 | Balances as of December 31, 2021 | 22,177 | | | - | | | 153 | | 11,495 | | (2,945) | | 13,474 | | | | | | 16 | Net income | 7,514 | | | - | | | - | | - | | - | | 7,514 | | | | | | 17 | Other comprehensive loss | (265) | | | - | | | - | | - | | (265) | | - | | | | | | 20 | Repurchase of common shares | (3,332) | | | - | | | (4) | | (302) | | - | | (3,026) | | | | | | 21 | Other changes, primarily employee plans | 242 | | | - | | | - | | 300 | | - | | (58) | | | | | | 24 | Cash dividends declared preferred Series D, $35,993.05 per share | (57) | | | - | | | - | | - | | - | | (57) | | | | | | 25 | Cash dividends declared common, $2.08 per share | (1,568) | | | - | | | - | | - | | - | | (1,568) | | | | | | 26 | Balances as of December 31, 2022 | 24,711 | | | - | | | 149 | | 11,493 | | (3,210) | | 16,279 | | | | | | 27 | Net income | 8,374 | | | - | | | - | | - | | - | | 8,374 | | | | | | 28 | Other comprehensive income | 138 | | | - | | | - | | - | | 138 | | - | | | | | | 31 | Repurchase of common shares | (3,519) | | | - | | | (4) | | (334) | | - | | (3,181) | | | | | | 32 | Other changes, primarily employee plans | 181 | | | - | | | - | | 213 | | - | | (32) | | | | | | 35 | Cash dividends declared preferred Series D, $35,993.05 per share | (58) | | | - | | | - | | - | | - | | (58) | | | | | | 36 | Cash dividends declared common, $2.40 per share | (1,770) | | | - | | | - | | - | | - | | (1,770) | | | | | | 37 | Balances as of December 31, 2023 | $ | 28,057 | | | $ | - | | $ | 145 | | $ | 11,372 | | $ | (3,072) | $ | 19,612 | See Notes to Consolidated Financial Statements. 98 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 87: DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 4 | Other comprehensive income (loss), net of tax | | | | | | | | | | | 5 | Unrealized gains (losses) on available-for-sale investment securities, net of tax | 99 | | | (250) | | | (170) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 6 | | | (5) | | | 3 | | | | 7 | Unrealized pension and post-retirement plan gains, net of tax | 9 | | | 10 | | | 28 | | | | 8 | Other comprehensive income (loss) | 114 | | | (245) | | | (139) | | | | 9 | Comprehensive income | $ | 3,054 | | | $ | 4,129 | | $ | 5,283 | See Notes to the Consolidated Financial Statements. -87- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 88: DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:------|:-------------------------|:-----------------|:--------|:----------------------------------------------|:---|:--------------|:---|:-------------------------|:---|:-------|:------|:-------|:---------|:---|:------|:--------|:---|:---------|:---|:-------| | 1 | | Preferred Stock | Common Stock | | AdditionalPaid-inCapital | RetainedEarnings | | Accumulated Other Comprehensive Income (Loss) | | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | 4 | Balance at December 31, 2020 | 11 | | $ | 1,056 | | 567,898 | | | $ | 6 | | $ | 4,257 | $ | 19,754 | | $ | 45 | | $ | (14,435) | $ | 10,683 | | 5 | Net income | - | | - | | - | | | - | | | - | | 5,422 | - | | - | | | 5,422 | | | | | | 6 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (139) | | - | | | (139) | | | | | | 7 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,260) | | | (2,260) | | | | | | 8 | Common stock issued under employee benefit plans | - | | - | | 88 | | | - | | | 9 | | - | - | | - | | | 9 | | | | | | 9 | Common stock issued and stock-based compensation expense | - | | - | | 845 | | | - | | | 103 | | - | - | | - | | | 103 | | | | | | 11 | Dividends - common stock ($1.88 per share) | - | | - | | - | | | - | | | - | | (569) | - | | - | | | (569) | | | | | | 12 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 13 | Dividends - Series D preferred stock ($7,674 per share) | - | | - | | - | | | - | | | - | | (38) | - | | - | | | (38) | | | | | | 14 | Balance at December 31, 2021 | 11 | | 1,056 | | 568,831 | | | 6 | | | 4,369 | | 24,538 | (94) | | (16,695) | | | 13,180 | | | | | | 16 | Net income | - | | - | | - | | | - | | | - | | 4,374 | - | | - | | | 4,374 | | | | | | 17 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (245) | | - | | | (245) | | | | | | 18 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,359) | | | (2,359) | | | | | | 19 | Common stock issued under employee benefit plans | - | | - | | 107 | | | - | | | 10 | | - | - | | - | | | 10 | | | | | | 20 | Common stock issued and stock-based compensation expense | - | | - | | 751 | | | - | | | 89 | | - | - | | - | | | 89 | | | | | | 22 | Dividends - common stock ($2.30 per share) | - | | - | | - | | | - | | | - | | (643) | - | | - | | | (643) | | | | | | 23 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 24 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 25 | Balance at December 31, 2022 | 11 | | 1,056 | | 569,689 | | | 6 | | | 4,468 | | 28,207 | (339) | | (19,054) | | | 14,344 | | | | | | 26 | Cumulative effect of ASU No. 2022-02 adoption | - | | - | | - | | | - | | | - | | 52 | - | | - | | | 52 | | | | | | 27 | Net income | - | | - | | - | | | - | | | - | | 2,940 | - | | - | | | 2,940 | | | | | | 28 | Other comprehensive income | - | | - | | - | | | - | | | - | | - | 114 | | - | | | 114 | | | | | | 29 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (1,956) | | | (1,956) | | | | | | 30 | Common stock issued under employee benefit plans | - | | - | | 118 | | | - | | | 11 | | - | - | | - | | | 11 | | | | | | 31 | Common stock issued and stock-based compensation expense | - | | - | | 1,031 | | | - | | | 74 | | - | - | | - | | | 74 | | | | | | 33 | Dividends - common stock ($2.70 per share) | - | | - | | - | | | - | | | - | | (689) | - | | - | | | (689) | | | | | | 34 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 35 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 36 | Balance at December 31, 2023 | 11 | | $ | 1,056 | | 570,838 | | | $ | 6 | | $ | 4,553 | $ | 30,448 | | $ | (225) | | $ | (21,010) | $ | 14,828 | See Notes to the Consolidated Financial Statements. -88- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF INCOME | | | | | | | | | | | | |---:|:--------------------------------------------------------------------------|:-------|:-------|:-----|:-------|:-----|:-------|:--------|:---|:-------| | 1 | Year Ended December 31 (Millions, except per share amounts) | 2023 | | 2022 | | 2021 | | | | | | 2 | Revenues | | | | | | | | | | | 3 | Non-interest revenues | | | | | | | | | | | 4 | Discount revenue | $ | 33,416 | | | $ | 30,739 | | $ | 24,563 | | 5 | Net card fees | 7,255 | | | 6,070 | | | 5,195 | | | | 6 | Service fees and other revenue | 5,005 | | | 4,521 | | | 3,316 | | | | 7 | Processed revenue | 1,705 | | | 1,637 | | | 1,556 | | | | 8 | Total non-interest revenues | 47,381 | | | 42,967 | | | 34,630 | | | | 9 | Interest income | | | | | | | | | | | 10 | Interest on loans | 17,697 | | | 11,967 | | | 8,850 | | | | 11 | Interest and dividends on investment securities | 128 | | | 96 | | | 83 | | | | 12 | Deposits with banks and other | 2,158 | | | 595 | | | 100 | | | | 13 | Total interest income | 19,983 | | | 12,658 | | | 9,033 | | | | 14 | Interest expense | | | | | | | | | | | 15 | Deposits | 4,865 | | | 1,527 | | | 458 | | | | 16 | Long-term debt and other | 1,984 | | | 1,236 | | | 825 | | | | 17 | Total interest expense | 6,849 | | | 2,763 | | | 1,283 | | | | 18 | Net interest income | 13,134 | | | 9,895 | | | 7,750 | | | | 19 | Total revenues net of interest expense | 60,515 | | | 52,862 | | | 42,380 | | | | 20 | Provisions for credit losses | | | | | | | | | | | 21 | Card Member receivables | 880 | | | 627 | | | (73) | | | | 22 | Card Member loans | 3,839 | | | 1,514 | | | (1,155) | | | | 23 | Other | 204 | | | 41 | | | (191) | | | | 24 | Total provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 25 | Total revenues net of interest expense after provisions for credit losses | 55,592 | | | 50,680 | | | 43,799 | | | | 26 | Expenses | | | | | | | | | | | 27 | Card Member rewards | 15,367 | | | 14,002 | | | 11,007 | | | | 28 | Business development | 5,657 | | | 4,943 | | | 3,762 | | | | 29 | Card Member services | 3,968 | | | 2,959 | | | 1,993 | | | | 30 | Marketing | 5,213 | | | 5,458 | | | 5,291 | | | | 31 | Salaries and employee benefits | 8,067 | | | 7,252 | | | 6,240 | | | | 32 | Other, net | 6,807 | | | 6,481 | | | 4,817 | | | | 33 | Total expenses | 45,079 | | | 41,095 | | | 33,110 | | | | 34 | Pretax income | 10,513 | | | 9,585 | | | 10,689 | | | | 35 | Income tax provision | 2,139 | | | 2,071 | | | 2,629 | | | | 36 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 37 | Earnings per Common Share - (Note 21)(a) | | | | | | | | | | | 38 | Basic | $ | 11.23 | | | $ | 9.86 | | $ | 10.04 | | 39 | Diluted | $ | 11.21 | | | $ | 9.85 | | $ | 10.02 | | 40 | Average common shares outstanding for earnings per common share: | | | | | | | | | | | 41 | Basic | | | | 751 | | | 789 | | | | 42 | Diluted | | | | 752 | | | 790 | | | (a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | | | | | | | | |---:|:---------------------------------------------------------------------|:-----|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | Year Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 3 | Other comprehensive income (loss): | | | | | | | | | | | 4 | Net unrealized debt securities gains (losses), net of tax | | | | (87) | | | (42) | | | | 5 | Foreign currency translation adjustments, net of hedges and tax | | | | (230) | | | (163) | | | | 6 | Net unrealized pension and other postretirement benefits, net of tax | 37 | | | 52 | | | 155 | | | | 7 | Other comprehensive income (loss) | 138 | | | (265) | | | (50) | | | | 8 | Comprehensive income | $ | 8,512 | | | $ | 7,249 | | $ | 8,010 | See Notes to Consolidated Financial Statements. 95 , CONSOLIDATED BALANCE SHEETS | | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:--------|:-----|:--------|:---|:--------| | 1 | December 31 (Millions, except share data) | 2023 | | 2022 | | | | | 2 | Assets | | | | | | | | 3 | Cash and cash equivalents | | | | | | | | 4 | Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5) | $ | 7,118 | | | $ | 5,510 | | 5 | Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318) | 39,312 | | | 28,097 | | | | 6 | Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54) | 166 | | | 307 | | | | 7 | Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544) | 46,596 | | | 33,914 | | | | 8 | Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229 | 60,237 | | | 57,384 | | | | 10 | Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747 | 120,877 | | | 104,217 | | | | 11 | Other loans, less reserves for credit losses: 2023, $126; 2022, $59 | 6,960 | | | 5,357 | | | | 12 | Investment securities | 2,186 | | | 4,578 | | | | 13 | Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850 | 5,138 | | | 5,215 | | | | 14 | Other assets, less reserves for credit losses: 2023, $27; 2022, $22 | 19,114 | | | 17,689 | | | | 15 | Total assets | $ | 261,108 | | | $ | 228,354 | | 16 | Liabilities and Shareholders' Equity | | | | | | | | 17 | Liabilities | | | | | | | | 18 | Customer deposits | $ | 129,144 | | | $ | 110,239 | | 19 | Accounts payable | 13,109 | | | 12,133 | | | | 20 | Short-term borrowings | 1,293 | | | 1,348 | | | | 21 | Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662) | 47,866 | | | 42,573 | | | | 22 | Other liabilities | 41,639 | | | 37,350 | | | | 23 | Total liabilities | $ | 233,051 | | | $ | 203,643 | | 24 | Contingencies and Commitments (Note 12) | | | | | | | | 25 | Shareholders' Equity | | | | | | | | 26 | Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16) | - | | | - | | | | 27 | Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 | 145 | | | 149 | | | | 28 | Additional paid-in capital | 11,372 | | | 11,493 | | | | 29 | Retained earnings | 19,612 | | | 16,279 | | | | 30 | Accumulated other comprehensive income (loss) | (3,072) | | | (3,210) | | | | 31 | Total shareholders' equity | 28,057 | | | 24,711 | | | | 32 | Total liabilities and shareholders' equity | $ | 261,108 | | | $ | 228,354 | See Notes to Consolidated Financial Statements. 96 , CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------|:---------|:-------|:-----|:---------|:-----|:-------|:---------|:---|:-------| | 1 | Years Ended December 31 (Millions) | 2023 | | 2022 | | 2021 | | | | | | 2 | Cash Flows from Operating Activities | | | | | | | | | | | 3 | Net income | $ | 8,374 | | | $ | 7,514 | | $ | 8,060 | | 4 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 5 | Provisions for credit losses | 4,923 | | | 2,182 | | | (1,419) | | | | 6 | Depreciation and amortization | 1,651 | | | 1,626 | | | 1,695 | | | | 7 | Stock-based compensation | 450 | | | 375 | | | 330 | | | | 8 | Deferred taxes | (1,329) | | | (1,189) | | | 294 | | | | 9 | Other items (a) | 664 | | | 365 | | | (772) | | | | 10 | Originations of loans held-for-sale | (54) | | | (277) | | | - | | | | 11 | Proceeds from sales of loans held-for-sale | 59 | | | 277 | | | - | | | | 12 | Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | | | | | | | | | | | 13 | Other assets | (1,244) | | | 1,391 | | | 1,068 | | | | 14 | Accounts payable & other liabilities | 5,065 | | | 8,815 | | | 5,389 | | | | 15 | Net cash provided by operating activities | 18,559 | | | 21,079 | | | 14,645 | | | | 16 | Cash Flows from Investing Activities | | | | | | | | | | | 17 | Sale of investments | 2 | | | 26 | | | 62 | | | | 18 | Maturities and redemptions of investments | 3,888 | | | 1,892 | | | 20,032 | | | | 19 | Purchase of investments | (1,572) | | | (4,175) | | | (1,517) | | | | 20 | Net increase in Card Member loans and receivables, and other loans (b) | (25,124) | | | (29,562) | | | (27,557) | | | | 21 | Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88 | (1,563) | | | (1,855) | | | (1,550) | | | | 22 | Net (Acquisitions)/dispositions, net of cash acquired | (64) | | | (15) | | | 1 | | | | 24 | Net cash used in investing activities | (24,433) | | | (33,689) | | | (10,529) | | | | 25 | Cash Flows from Financing Activities | | | | | | | | | | | 26 | Net increase (decrease) in customer deposits | 18,915 | | | 25,902 | | | (2,468) | | | | 27 | Net (decrease) increase in short-term borrowings (b) | (105) | | | (706) | | | 461 | | | | 28 | Proceeds from long-term debt | 15,674 | | | 23,230 | | | 7,788 | | | | 29 | Payments of long-term debt | (10,703) | | | (18,906) | | | (11,662) | | | | 30 | Issuance of American Express preferred shares | - | | | - | | | 1,584 | | | | 31 | Redemption of American Express preferred shares | - | | | - | | | (1,600) | | | | 32 | Issuance of American Express common shares | 28 | | | 56 | | | 64 | | | | 33 | Repurchase of American Express common shares and other | (3,650) | | | (3,502) | | | (7,652) | | | | 34 | Dividends paid | (1,780) | | | (1,565) | | | (1,448) | | | | 35 | Net cash provided by (used in) financing activities | 18,379 | | | 24,509 | | | (14,933) | | | | 36 | Effect of foreign currency exchange rates on cash and cash equivalents | 177 | | | (13) | | | (120) | | | | 37 | Net increase (decrease) in cash and cash equivalents | 12,682 | | | 11,886 | | | (10,937) | | | | 38 | Cash and cash equivalents at beginning of year | 33,914 | | | 22,028 | | | 32,965 | | | | 39 | Cash and cash equivalents at end of year | $ | 46,596 | | | $ | 33,914 | | $ | 22,028 | (a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------------|:--------|:-------|:-----------------|:---|:--------------|:---|:---------------------------|:----------------------------------------------|:--------|:------------------|:--------|:-------|:--------|:---|:--------|:---|:-------| | 1 | (Millions, except per share amounts) | Total | | Preferred Shares | | Common Shares | | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | | Retained Earnings | | | | | | | | | 2 | Balances as of December 31, 2020 | $ | 22,984 | | | $ | - | | $ | 161 | | $ | 11,881 | | $ | (2,895) | $ | 13,837 | | 4 | Net income | 8,060 | | | - | | | - | | - | | - | | 8,060 | | | | | | 5 | Other comprehensive loss | (50) | | | - | | | - | | - | | (50) | | - | | | | | | 6 | Preferred shares issued | 1,584 | | | - | | | - | | 1,584 | | - | | - | | | | | | 7 | Redemption of preferred shares | (1,600) | | | - | | | - | | (1,584) | | - | | (16) | | | | | | 8 | Repurchase of common shares | (7,598) | | | - | | | (9) | | (631) | | - | | (6,958) | | | | | | 9 | Other changes, primarily employee plans | 227 | | | - | | | 1 | | 245 | | - | | (19) | | | | | | 10 | Cash dividends declared preferred Series B, $36,419.41 per share | (27) | | | - | | | - | | - | | - | | (27) | | | | | | 11 | Cash dividends declared preferred Series C, $26,317.47 per share | (23) | | | - | | | - | | - | | - | | (23) | | | | | | 12 | Cash dividends declared preferred Series D, $13,213.89 per share | (21) | | | - | | | - | | - | | - | | (21) | | | | | | 13 | Cash dividends declared common, $1.72 per share | (1,359) | | | - | | | - | | - | | - | | (1,359) | | | | | | 14 | Balances as of December 31, 2021 | 22,177 | | | - | | | 153 | | 11,495 | | (2,945) | | 13,474 | | | | | | 16 | Net income | 7,514 | | | - | | | - | | - | | - | | 7,514 | | | | | | 17 | Other comprehensive loss | (265) | | | - | | | - | | - | | (265) | | - | | | | | | 20 | Repurchase of common shares | (3,332) | | | - | | | (4) | | (302) | | - | | (3,026) | | | | | | 21 | Other changes, primarily employee plans | 242 | | | - | | | - | | 300 | | - | | (58) | | | | | | 24 | Cash dividends declared preferred Series D, $35,993.05 per share | (57) | | | - | | | - | | - | | - | | (57) | | | | | | 25 | Cash dividends declared common, $2.08 per share | (1,568) | | | - | | | - | | - | | - | | (1,568) | | | | | | 26 | Balances as of December 31, 2022 | 24,711 | | | - | | | 149 | | 11,493 | | (3,210) | | 16,279 | | | | | | 27 | Net income | 8,374 | | | - | | | - | | - | | - | | 8,374 | | | | | | 28 | Other comprehensive income | 138 | | | - | | | - | | - | | 138 | | - | | | | | | 31 | Repurchase of common shares | (3,519) | | | - | | | (4) | | (334) | | - | | (3,181) | | | | | | 32 | Other changes, primarily employee plans | 181 | | | - | | | - | | 213 | | - | | (32) | | | | | | 35 | Cash dividends declared preferred Series D, $35,993.05 per share | (58) | | | - | | | - | | - | | - | | (58) | | | | | | 36 | Cash dividends declared common, $2.40 per share | (1,770) | | | - | | | - | | - | | - | | (1,770) | | | | | | 37 | Balances as of December 31, 2023 | $ | 28,057 | | | $ | - | | $ | 145 | | $ | 11,372 | | $ | (3,072) | $ | 19,612 | See Notes to Consolidated Financial Statements. 98 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)| | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------| | 1 | | December 31, | | | | | | | 2 | | 2023 | | 2022 | | | | | 3 | Assets | | | | | | | | 4 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | 5 | Restricted cash | 43 | | | 41 | | | | 7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655 | | | 12,208 | | | | 8 | Loan receivables | | | | | | | | 9 | Loan receivables | 128,409 | | | 112,120 | | | | 10 | Allowance for credit losses | (9,283) | | | (7,374) | | | | 11 | Net loan receivables | 119,126 | | | 104,746 | | | | 12 | Premises and equipment, net | 1,091 | | | 1,003 | | | | 13 | Goodwill | 255 | | | 255 | | | | 15 | Other assets | 5,667 | | | 4,597 | | | | 16 | Total assets | $ | 151,522 | | | $ | 131,706 | | 17 | Liabilities and Stockholders' Equity | | | | | | | | 18 | Liabilities | | | | | | | | 19 | Deposits | | | | | | | | 20 | Interest-bearing deposit accounts | $ | 107,493 | | | $ | 90,151 | | 21 | Non-interest-bearing deposit accounts | 1,438 | | | 1,485 | | | | 22 | Total deposits | 108,931 | | | 91,636 | | | | 23 | Short-term borrowings | 750 | | | - | | | | 24 | Long-term borrowings | 20,581 | | | 20,108 | | | | 25 | Accrued expenses and other liabilities | 6,432 | | | 5,618 | | | | 26 | Total liabilities | 136,694 | | | 117,362 | | | | 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19) | | | | | | | | 28 | Stockholders' Equity | | | | | | | | 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively | 6 | | | 6 | | | | 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively | 1,056 | | | 1,056 | | | | 31 | Additional paid-in capital | 4,553 | | | 4,468 | | | | 32 | Retained earnings | 30,448 | | | 28,207 | | | | 33 | Accumulated other comprehensive loss | (225) | | | (339) | | | | 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively | (21,010) | | | (19,054) | | | | 35 | Total stockholders' equity | 14,828 | | | 14,344 | | | | 36 | Total liabilities and stockholders' equity | $ | 151,522 | | | $ | 131,706 | The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. | | | | | | | | |---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------| | 1 | | December 31, | | | | | | 2 | | 2023 | | 2022 | | | | 3 | Assets | | | | | | | 4 | Restricted cash | $ | 43 | | $ | 41 | | 5 | Loan receivables | $ | 30,590 | | $ | 25,937 | | 6 | Allowance for credit losses allocated to securitized loan receivables | $ | (1,347) | | $ | (1,152) | | 7 | Other assets | $ | 3 | | $ | 3 | | 8 | Liabilities | | | | | | | 9 | Short- and long-term borrowings | $ | 11,743 | | $ | 10,259 | | 10 | Accrued expenses and other liabilities | $ | 19 | | $ | 14 | See Notes to the Consolidated Financial Statements. -85- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)| | | | | | | | | | | | |---:|:------------------------------------------------------|:---------------------------------|:-------|:-----|:-------|:-----|:-------|:-------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Interest income | | | | | | | | | | | 4 | Credit card loans | $ | 14,438 | | | $ | 10,632 | | $ | 8,717 | | 5 | Other loans | 2,515 | | | 1,870 | | | 1,734 | | | | 6 | Investment securities | 449 | | | 179 | | | 182 | | | | 7 | Other interest income | 443 | | | 183 | | | 18 | | | | 8 | Total interest income | 17,845 | | | 12,864 | | | 10,651 | | | | 9 | Interest expense | | | | | | | | | | | 10 | Deposits | 3,886 | | | 1,257 | | | 661 | | | | 11 | Short-term borrowings | 5 | | | 2 | | | - | | | | 12 | Long-term borrowings | 855 | | | 606 | | | 473 | | | | 13 | Total interest expense | 4,746 | | | 1,865 | | | 1,134 | | | | 14 | Net interest income | 13,099 | | | 10,999 | | | 9,517 | | | | 15 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 16 | Net interest income after provision for credit losses | 7,081 | | | 8,640 | | | 9,299 | | | | 17 | Other income | | | | | | | | | | | 18 | Discount and interchange revenue, net | 1,447 | | | 1,380 | | | 1,188 | | | | 19 | Protection products revenue | 172 | | | 172 | | | 165 | | | | 20 | Loan fee income | 763 | | | 632 | | | 464 | | | | 21 | Transaction processing revenue | 303 | | | 249 | | | 227 | | | | 22 | (Losses) gains on equity investments | (9) | | | (214) | | | 424 | | | | 23 | Other income | 85 | | | 75 | | | 66 | | | | 24 | Total other income | 2,761 | | | 2,294 | | | 2,534 | | | | 25 | Other expense | | | | | | | | | | | 26 | Employee compensation and benefits | 2,434 | | | 2,139 | | | 1,986 | | | | 27 | Marketing and business development | 1,164 | | | 1,035 | | | 810 | | | | 28 | Information processing and communications | 608 | | | 513 | | | 500 | | | | 29 | Professional fees | 1,041 | | | 871 | | | 797 | | | | 30 | Premises and equipment | 89 | | | 118 | | | 92 | | | | 31 | Other expense | 680 | | | 540 | | | 620 | | | | 32 | Total other expense | 6,016 | | | 5,216 | | | 4,805 | | | | 33 | Income before income taxes | 3,826 | | | 5,718 | | | 7,028 | | | | 34 | Income tax expense | 886 | | | 1,344 | | | 1,606 | | | | 35 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 36 | Net income allocated to common stockholders | $ | 2,859 | | | $ | 4,286 | | $ | 5,323 | | 37 | Basic earnings per common share | $ | 11.27 | | | $ | 15.45 | | $ | 17.75 | | 38 | Diluted earnings per common share | $ | 11.26 | | | $ | 15.44 | | $ | 17.74 | See Notes to the Consolidated Financial Statements. -86- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:------|:-----|:------|:-----|:------|:------|:---|:------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 4 | Other comprehensive income (loss), net of tax | | | | | | | | | | | 5 | Unrealized gains (losses) on available-for-sale investment securities, net of tax | 99 | | | (250) | | | (170) | | | | 6 | Unrealized gains (losses) on cash flow hedges, net of tax | 6 | | | (5) | | | 3 | | | | 7 | Unrealized pension and post-retirement plan gains, net of tax | 9 | | | 10 | | | 28 | | | | 8 | Other comprehensive income (loss) | 114 | | | (245) | | | (139) | | | | 9 | Comprehensive income | $ | 3,054 | | | $ | 4,129 | | $ | 5,283 | See Notes to the Consolidated Financial Statements. -87- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | | |---:|:---------------------------------------------------------|:----------------|:-------------|:------|:-------------------------|:-----------------|:--------|:----------------------------------------------|:---|:--------------|:---|:-------------------------|:---|:-------|:------|:-------|:---------|:---|:------|:--------|:---|:---------|:---|:-------| | 1 | | Preferred Stock | Common Stock | | AdditionalPaid-inCapital | RetainedEarnings | | Accumulated Other Comprehensive Income (Loss) | | TreasuryStock | | TotalStockholders'Equity | | | | | | | | | | | | | | 3 | | Shares | Amount | | Shares | Amount | | | | | | | | | | | | | | | | | | | | 4 | Balance at December 31, 2020 | 11 | | $ | 1,056 | | 567,898 | | | $ | 6 | | $ | 4,257 | $ | 19,754 | | $ | 45 | | $ | (14,435) | $ | 10,683 | | 5 | Net income | - | | - | | - | | | - | | | - | | 5,422 | - | | - | | | 5,422 | | | | | | 6 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (139) | | - | | | (139) | | | | | | 7 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,260) | | | (2,260) | | | | | | 8 | Common stock issued under employee benefit plans | - | | - | | 88 | | | - | | | 9 | | - | - | | - | | | 9 | | | | | | 9 | Common stock issued and stock-based compensation expense | - | | - | | 845 | | | - | | | 103 | | - | - | | - | | | 103 | | | | | | 11 | Dividends - common stock ($1.88 per share) | - | | - | | - | | | - | | | - | | (569) | - | | - | | | (569) | | | | | | 12 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 13 | Dividends - Series D preferred stock ($7,674 per share) | - | | - | | - | | | - | | | - | | (38) | - | | - | | | (38) | | | | | | 14 | Balance at December 31, 2021 | 11 | | 1,056 | | 568,831 | | | 6 | | | 4,369 | | 24,538 | (94) | | (16,695) | | | 13,180 | | | | | | 16 | Net income | - | | - | | - | | | - | | | - | | 4,374 | - | | - | | | 4,374 | | | | | | 17 | Other comprehensive loss | - | | - | | - | | | - | | | - | | - | (245) | | - | | | (245) | | | | | | 18 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (2,359) | | | (2,359) | | | | | | 19 | Common stock issued under employee benefit plans | - | | - | | 107 | | | - | | | 10 | | - | - | | - | | | 10 | | | | | | 20 | Common stock issued and stock-based compensation expense | - | | - | | 751 | | | - | | | 89 | | - | - | | - | | | 89 | | | | | | 22 | Dividends - common stock ($2.30 per share) | - | | - | | - | | | - | | | - | | (643) | - | | - | | | (643) | | | | | | 23 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 24 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 25 | Balance at December 31, 2022 | 11 | | 1,056 | | 569,689 | | | 6 | | | 4,468 | | 28,207 | (339) | | (19,054) | | | 14,344 | | | | | | 26 | Cumulative effect of ASU No. 2022-02 adoption | - | | - | | - | | | - | | | - | | 52 | - | | - | | | 52 | | | | | | 27 | Net income | - | | - | | - | | | - | | | - | | 2,940 | - | | - | | | 2,940 | | | | | | 28 | Other comprehensive income | - | | - | | - | | | - | | | - | | - | 114 | | - | | | 114 | | | | | | 29 | Purchases of treasury stock | - | | - | | - | | | - | | | - | | - | - | | (1,956) | | | (1,956) | | | | | | 30 | Common stock issued under employee benefit plans | - | | - | | 118 | | | - | | | 11 | | - | - | | - | | | 11 | | | | | | 31 | Common stock issued and stock-based compensation expense | - | | - | | 1,031 | | | - | | | 74 | | - | - | | - | | | 74 | | | | | | 33 | Dividends - common stock ($2.70 per share) | - | | - | | - | | | - | | | - | | (689) | - | | - | | | (689) | | | | | | 34 | Dividends - Series C preferred stock ($5,500 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 35 | Dividends - Series D preferred stock ($6,125 per share) | - | | - | | - | | | - | | | - | | (31) | - | | - | | | (31) | | | | | | 36 | Balance at December 31, 2023 | 11 | | $ | 1,056 | | 570,838 | | | $ | 6 | | $ | 4,553 | $ | 30,448 | | $ | (225) | | $ | (21,010) | $ | 14,828 | See Notes to the Consolidated Financial Statements. -88- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------|:---------------------------------|:-------|:-----|:---------|:-----|:------|:--------|:---|:-------| | 1 | | For the Years Ended December 31, | | | | | | | | | | 2 | | 2023 | | 2022 | | 2021 | | | | | | 3 | Cash flows provided by operating activities | | | | | | | | | | | 4 | Net income | $ | 2,940 | | | $ | 4,374 | | $ | 5,422 | | 5 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | 6 | Provision for credit losses | 6,018 | | | 2,359 | | | 218 | | | | 7 | Deferred income taxes | (626) | | | (433) | | | 318 | | | | 8 | Depreciation and amortization | 458 | | | 561 | | | 531 | | | | 9 | Amortization of deferred revenues | (468) | | | (365) | | | (295) | | | | 10 | Net losses (gains) on investments and other assets | 50 | | | 261 | | | (382) | | | | 11 | Other, net | 110 | | | 125 | | | 257 | | | | 12 | Changes in assets and liabilities: | | | | | | | | | | | 13 | Increase in other assets | (658) | | | (846) | | | (496) | | | | 14 | Increase in accrued expenses and other liabilities | 739 | | | 1,104 | | | 446 | | | | 15 | Net cash provided by operating activities | 8,563 | | | 7,140 | | | 6,019 | | | | 17 | Cash flows provided by (used for) investing activities | | | | | | | | | | | 18 | Maturities of other short-term investments | - | | | - | | | 2,200 | | | | 20 | Maturities of available-for-sale investment securities | 1,831 | | | 2,084 | | | 2,727 | | | | 21 | Purchases of available-for-sale investment securities | (2,996) | | | (7,682) | | | (9) | | | | 22 | Maturities of held-to-maturity investment securities | 16 | | | 32 | | | 82 | | | | 23 | Purchases of held-to-maturity investment securities | (49) | | | (50) | | | (28) | | | | 24 | Net change in principal on loans originated for investment | (19,934) | | | (19,961) | | | (4,574) | | | | 25 | Proceeds from the sale of available for sale securities | - | | | - | | | 5 | | | | 26 | Proceeds from the sale of other investments | 44 | | | 336 | | | 1 | | | | 27 | Purchases of other investments | (100) | | | (169) | | | (170) | | | | 28 | Proceeds from sale of premises and equipment | - | | | 9 | | | - | | | | 29 | Purchases of premises and equipment | (303) | | | (236) | | | (194) | | | | 30 | Net cash (used for) provided by investing activities | (21,491) | | | (25,637) | | | 40 | | | | 32 | Cash flows (used for) provided by financing activities | | | | | | | | | | | 33 | Net change in short-term borrowings | 750 | | | (1,750) | | | 1,750 | | | | 34 | Net change in deposits | 17,250 | | | 19,208 | | | (4,533) | | | | 35 | Proceeds from issuance of securitized debt | 2,230 | | | 5,620 | | | 1,727 | | | | 36 | Maturities and repayment of securitized debt | (1,494) | | | (4,395) | | | (3,451) | | | | 37 | Proceeds from issuance of other long-term borrowings | 2,041 | | | 1,265 | | | - | | | | 38 | Maturities and repayments of other long-term borrowings | (2,340) | | | (834) | | | (922) | | | | 39 | Proceeds from issuance of common stock | 12 | | | 10 | | | 9 | | | | 42 | Dividends paid on common and preferred stock | (752) | | | (703) | | | (636) | | | | 43 | Purchases of treasury stock | (1,938) | | | (2,359) | | | (2,260) | | | | 44 | Net cash provided by (used for) financing activities | 15,759 | | | 16,062 | | | (8,316) | | | | 45 | Net increase (decrease) in cash, cash equivalents and restricted cash | 2,831 | | | (2,435) | | | (2,257) | | | | 46 | Cash, cash equivalents and restricted cash, at the beginning of the period | 8,897 | | | 11,332 | | | 13,589 | | | | 47 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 49 | Reconciliation of cash, cash equivalents and restricted cash | | | | | | | | | | | 50 | Cash and cash equivalents | $ | 11,685 | | | $ | 8,856 | | $ | 8,750 | | 51 | Restricted cash | 43 | | | 41 | | | 2,582 | | | | 52 | Cash, cash equivalents and restricted cash, at the end of the period | $ | 11,728 | | | $ | 8,897 | | $ | 11,332 | | 54 | Supplemental disclosures of cash flow information: | | | | | | | | | | | 55 | Cash paid during the period for: | | | | | | | | | | | 56 | Interest expense | $ | 4,508 | | | $ | 1,666 | | $ | 1,077 | | 57 | Income taxes, net of income tax refunds | $ | 1,605 | | | $ | 1,865 | | $ | 1,305 | See Notes to the Consolidated Financial Statements. -89-
AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 94: CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 95: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(87)</td><td></td><td colspan="3"></td><td colspan="2">(42)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(230)</td><td></td><td colspan="3"></td><td colspan="2">(163)</td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">37 </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">155 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>8,512 </td><td></td><td colspan="3"></td><td>$</td><td>7,249 </td><td></td><td colspan="3"></td><td>$</td><td>8,010 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 95 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 96: CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 97: CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , AMERICAN EXPRESS CO 10-K form for the fiscal year ended 2023-12-31, page 98: CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">Total</td><td colspan="3"></td><td colspan="3">Preferred Shares</td><td colspan="3"></td><td colspan="3">Common Shares</td><td colspan="3"></td><td colspan="3">Additional Paid-in Capital</td><td colspan="3"></td><td colspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3">Retained Earnings</td></tr><tr><td colspan="3">Balances as of December 31, 2020</td><td colspan="3"></td><td>$</td><td>22,984 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>161 </td><td></td><td colspan="3"></td><td>$</td><td>11,881 </td><td></td><td colspan="3"></td><td>$</td><td>(2,895)</td><td></td><td colspan="3"></td><td>$</td><td>13,837 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,060 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Preferred shares issued</td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Redemption of preferred shares</td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,584)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(7,598)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(631)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(6,958)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">245 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series B, $36,419.41 per share</td><td colspan="3"></td><td colspan="2">(27)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series C, $26,317.47 per share</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(23)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $13,213.89 per share</td><td colspan="3"></td><td colspan="2">(21)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(21)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $1.72 per share</td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2021</td><td colspan="3"></td><td colspan="2">22,177 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">11,495 </td><td></td><td colspan="3"></td><td colspan="2">(2,945)</td><td></td><td colspan="3"></td><td colspan="2">13,474 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">7,514 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">7,514 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,332)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(302)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,026)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(57)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.08 per share</td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2022</td><td colspan="3"></td><td colspan="2">24,711 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,519)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(334)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,181)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">181 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">213 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(32)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(58)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.40 per share</td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2023</td><td colspan="3"></td><td>$</td><td>28,057 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>145 </td><td></td><td colspan="3"></td><td>$</td><td>11,372 </td><td></td><td colspan="3"></td><td>$</td><td>(3,072)</td><td></td><td colspan="3"></td><td>$</td><td>19,612 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 98 , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 86: DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 87: DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss), net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized gains (losses) on available-for-sale investment securities, net of tax</td><td colspan="2">99 </td><td></td><td colspan="3"></td><td colspan="2">(250)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Unrealized pension and post-retirement plan gains, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,054 </td><td></td><td colspan="3"></td><td>$</td><td>4,129 </td><td></td><td colspan="3"></td><td>$</td><td>5,283 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -87- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 88: DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9" rowspan="2">Preferred Stock</td><td colspan="3"></td><td colspan="9" rowspan="2">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at December 31, 2020</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">567,898 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,257 </td><td></td><td colspan="3"></td><td>$</td><td>19,754 </td><td></td><td colspan="3"></td><td>$</td><td>45 </td><td></td><td colspan="3"></td><td>$</td><td>(14,435)</td><td></td><td colspan="3"></td><td>$</td><td>10,683 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">88 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">845 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($1.88 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($7,674 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2021</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">568,831 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,369 </td><td></td><td colspan="3"></td><td colspan="2">24,538 </td><td></td><td colspan="3"></td><td colspan="2">(94)</td><td></td><td colspan="3"></td><td colspan="2">(16,695)</td><td></td><td colspan="3"></td><td colspan="2">13,180 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.30 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">569,689 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Cumulative effect of ASU No. 2022-02 adoption</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,031 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,838 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,553 </td><td></td><td colspan="3"></td><td>$</td><td>30,448 </td><td></td><td colspan="3"></td><td>$</td><td>(225)</td><td></td><td colspan="3"></td><td>$</td><td>(21,010)</td><td></td><td colspan="3"></td><td>$</td><td>14,828 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -88- , Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 89: DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
CONSOLIDATED STATEMENTS OF INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Non-interest revenues</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount revenue</td><td colspan="3"></td><td>$</td><td>33,416 </td><td></td><td colspan="3"></td><td>$</td><td>30,739 </td><td></td><td colspan="3"></td><td>$</td><td>24,563 </td><td></td></tr><tr><td colspan="3">Net card fees</td><td colspan="3"></td><td colspan="2">7,255 </td><td></td><td colspan="3"></td><td colspan="2">6,070 </td><td></td><td colspan="3"></td><td colspan="2">5,195 </td><td></td></tr><tr><td colspan="3">Service fees and other revenue</td><td colspan="3"></td><td colspan="2">5,005 </td><td></td><td colspan="3"></td><td colspan="2">4,521 </td><td></td><td colspan="3"></td><td colspan="2">3,316 </td><td></td></tr><tr><td colspan="3">Processed revenue</td><td colspan="3"></td><td colspan="2">1,705 </td><td></td><td colspan="3"></td><td colspan="2">1,637 </td><td></td><td colspan="3"></td><td colspan="2">1,556 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="3"></td><td colspan="2">47,381 </td><td></td><td colspan="3"></td><td colspan="2">42,967 </td><td></td><td colspan="3"></td><td colspan="2">34,630 </td><td></td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest on loans</td><td colspan="3"></td><td colspan="2">17,697 </td><td></td><td colspan="3"></td><td colspan="2">11,967 </td><td></td><td colspan="3"></td><td colspan="2">8,850 </td><td></td></tr><tr><td colspan="3">Interest and dividends on investment securities</td><td colspan="3"></td><td colspan="2">128 </td><td></td><td colspan="3"></td><td colspan="2">96 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td></tr><tr><td colspan="3">Deposits with banks and other</td><td colspan="3"></td><td colspan="2">2,158 </td><td></td><td colspan="3"></td><td colspan="2">595 </td><td></td><td colspan="3"></td><td colspan="2">100 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="3"></td><td colspan="2">19,983 </td><td></td><td colspan="3"></td><td colspan="2">12,658 </td><td></td><td colspan="3"></td><td colspan="2">9,033 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="2">4,865 </td><td></td><td colspan="3"></td><td colspan="2">1,527 </td><td></td><td colspan="3"></td><td colspan="2">458 </td><td></td></tr><tr><td colspan="3">Long-term debt and other</td><td colspan="3"></td><td colspan="2">1,984 </td><td></td><td colspan="3"></td><td colspan="2">1,236 </td><td></td><td colspan="3"></td><td colspan="2">825 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="3"></td><td colspan="2">6,849 </td><td></td><td colspan="3"></td><td colspan="2">2,763 </td><td></td><td colspan="3"></td><td colspan="2">1,283 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="2">13,134 </td><td></td><td colspan="3"></td><td colspan="2">9,895 </td><td></td><td colspan="3"></td><td colspan="2">7,750 </td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense</td><td colspan="3"></td><td colspan="2">60,515 </td><td></td><td colspan="3"></td><td colspan="2">52,862 </td><td></td><td colspan="3"></td><td colspan="2">42,380 </td><td></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member receivables</td><td colspan="3"></td><td colspan="2">880 </td><td></td><td colspan="3"></td><td colspan="2">627 </td><td></td><td colspan="3"></td><td colspan="2">(73)</td><td></td></tr><tr><td colspan="3">Card Member loans</td><td colspan="3"></td><td colspan="2">3,839 </td><td></td><td colspan="3"></td><td colspan="2">1,514 </td><td></td><td colspan="3"></td><td colspan="2">(1,155)</td><td></td></tr><tr><td colspan="3">Other</td><td colspan="3"></td><td colspan="2">204 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">(191)</td><td></td></tr><tr><td colspan="3">Total provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Total revenues net of interest expense after provisions for credit losses</td><td colspan="3"></td><td colspan="2">55,592 </td><td></td><td colspan="3"></td><td colspan="2">50,680 </td><td></td><td colspan="3"></td><td colspan="2">43,799 </td><td></td></tr><tr><td colspan="3">Expenses</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member rewards</td><td colspan="3"></td><td colspan="2">15,367 </td><td></td><td colspan="3"></td><td colspan="2">14,002 </td><td></td><td colspan="3"></td><td colspan="2">11,007 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="3"></td><td colspan="2">5,657 </td><td></td><td colspan="3"></td><td colspan="2">4,943 </td><td></td><td colspan="3"></td><td colspan="2">3,762 </td><td></td></tr><tr><td colspan="3">Card Member services</td><td colspan="3"></td><td colspan="2">3,968 </td><td></td><td colspan="3"></td><td colspan="2">2,959 </td><td></td><td colspan="3"></td><td colspan="2">1,993 </td><td></td></tr><tr><td colspan="3">Marketing</td><td colspan="3"></td><td colspan="2">5,213 </td><td></td><td colspan="3"></td><td colspan="2">5,458 </td><td></td><td colspan="3"></td><td colspan="2">5,291 </td><td></td></tr><tr><td colspan="3">Salaries and employee benefits</td><td colspan="3"></td><td colspan="2">8,067 </td><td></td><td colspan="3"></td><td colspan="2">7,252 </td><td></td><td colspan="3"></td><td colspan="2">6,240 </td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="3"></td><td colspan="2">6,807 </td><td></td><td colspan="3"></td><td colspan="2">6,481 </td><td></td><td colspan="3"></td><td colspan="2">4,817 </td><td></td></tr><tr><td colspan="3">Total expenses</td><td colspan="3"></td><td colspan="2">45,079 </td><td></td><td colspan="3"></td><td colspan="2">41,095 </td><td></td><td colspan="3"></td><td colspan="2">33,110 </td><td></td></tr><tr><td colspan="3">Pretax income</td><td colspan="3"></td><td colspan="2">10,513 </td><td></td><td colspan="3"></td><td colspan="2">9,585 </td><td></td><td colspan="3"></td><td colspan="2">10,689 </td><td></td></tr><tr><td colspan="3">Income tax provision</td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">2,071 </td><td></td><td colspan="3"></td><td colspan="2">2,629 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Earnings per Common Share - (Note 21)(a)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td>$</td><td>11.23 </td><td></td><td colspan="3"></td><td>$</td><td>9.86 </td><td></td><td colspan="3"></td><td>$</td><td>10.04 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td>$</td><td>11.21 </td><td></td><td colspan="3"></td><td>$</td><td>9.85 </td><td></td><td colspan="3"></td><td>$</td><td>10.02 </td><td></td></tr><tr><td colspan="3">Average common shares outstanding for earnings per common share:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">789 </td><td></td></tr><tr><td colspan="3">Diluted</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">752 </td><td></td><td colspan="3"></td><td colspan="2">790 </td><td></td></tr></table>(a)Represents net income less (i) earnings allocated to participating share awards of $64 million, $57 million and $56 million for the years ended December 31, 2023, 2022 and 2021, respectively, (ii) dividends on preferred shares of $58 million, $57 million and $71 million for the years ended December 31, 2023, 2022 and 2021, respectively, and (iii) equity-related adjustments of $16 million related to the redemption of preferred shares for the year ended December 31, 2021. See Notes to Consolidated Financial Statements. 94 , CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Year Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss):</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net unrealized debt securities gains (losses), net of tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(87)</td><td></td><td colspan="3"></td><td colspan="2">(42)</td><td></td></tr><tr><td colspan="3">Foreign currency translation adjustments, net of hedges and tax</td><td colspan="3"></td><td colspan="2"> </td><td></td><td colspan="3"></td><td colspan="2">(230)</td><td></td><td colspan="3"></td><td colspan="2">(163)</td><td></td></tr><tr><td colspan="3">Net unrealized pension and other postretirement benefits, net of tax</td><td colspan="3"></td><td colspan="2">37 </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">155 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td colspan="3"></td><td>$</td><td>8,512 </td><td></td><td colspan="3"></td><td>$</td><td>7,249 </td><td></td><td colspan="3"></td><td>$</td><td>8,010 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 95 , CONSOLIDATED BALANCE SHEETS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">December 31 (Millions, except share data)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks (includes restricted cash of consolidated variable interest entities: 2023, nil; 2022, $5)</td><td colspan="3"></td><td>$</td><td>7,118 </td><td></td><td colspan="3"></td><td>$</td><td>5,510 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in other banks (includes securities purchased under resale agreements: 2023, nil; 2022, $318)</td><td colspan="3"></td><td colspan="2">39,312 </td><td></td><td colspan="3"></td><td colspan="2">28,097 </td><td></td></tr><tr><td colspan="3">Short-term investment securities (includes restricted investments of consolidated variable interest entities: 2023, $66; 2022, $54)</td><td colspan="3"></td><td colspan="2">166 </td><td></td><td colspan="3"></td><td colspan="2">307 </td><td></td></tr><tr><td colspan="3">Total cash and cash equivalents (includes restricted cash: 2023, $514; 2022, $544)</td><td colspan="3"></td><td colspan="2">46,596 </td><td></td><td colspan="3"></td><td colspan="2">33,914 </td><td></td></tr><tr><td colspan="3">Card Member receivables (includes gross receivables available to settle obligations of a consolidated variable interest entity: 2023, $4,587; 2022, $5,193), less reserves for credit losses: 2023, $174; 2022, $229</td><td colspan="3"></td><td colspan="2">60,237 </td><td></td><td colspan="3"></td><td colspan="2">57,384 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Card Member loans (includes gross loans available to settle obligations of a consolidated variable interest entity: 2023, $28,590; 2022, $28,461), less reserves for credit losses: 2023, $5,118; 2022, $3,747</td><td colspan="3"></td><td colspan="2">120,877 </td><td></td><td colspan="3"></td><td colspan="2">104,217 </td><td></td></tr><tr><td colspan="3">Other loans, less reserves for credit losses: 2023, $126; 2022, $59</td><td colspan="3"></td><td colspan="2">6,960 </td><td></td><td colspan="3"></td><td colspan="2">5,357 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="3"></td><td colspan="2">2,186 </td><td></td><td colspan="3"></td><td colspan="2">4,578 </td><td></td></tr><tr><td colspan="3">Premises and equipment, less accumulated depreciation and amortization: 2023, $9,911; 2022, $9,850</td><td colspan="3"></td><td colspan="2">5,138 </td><td></td><td colspan="3"></td><td colspan="2">5,215 </td><td></td></tr><tr><td colspan="3">Other assets, less reserves for credit losses: 2023, $27; 2022, $22</td><td colspan="3"></td><td colspan="2">19,114 </td><td></td><td colspan="3"></td><td colspan="2">17,689 </td><td></td></tr><tr><td colspan="3">Total assets</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr><tr><td colspan="3">Liabilities and Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Customer deposits</td><td colspan="3"></td><td>$</td><td>129,144 </td><td></td><td colspan="3"></td><td>$</td><td>110,239 </td><td></td></tr><tr><td colspan="3">Accounts payable</td><td colspan="3"></td><td colspan="2">13,109 </td><td></td><td colspan="3"></td><td colspan="2">12,133 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="3"></td><td colspan="2">1,293 </td><td></td><td colspan="3"></td><td colspan="2">1,348 </td><td></td></tr><tr><td colspan="3">Long-term debt (includes debt issued by consolidated variable interest entities: 2023, $13,426; 2022, $12,662)</td><td colspan="3"></td><td colspan="2">47,866 </td><td></td><td colspan="3"></td><td colspan="2">42,573 </td><td></td></tr><tr><td colspan="3">Other liabilities</td><td colspan="3"></td><td colspan="2">41,639 </td><td></td><td colspan="3"></td><td colspan="2">37,350 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="3"></td><td>$</td><td>233,051 </td><td></td><td colspan="3"></td><td>$</td><td>203,643 </td><td></td></tr><tr><td colspan="3">Contingencies and Commitments (Note 12)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred shares, $1.662/3 par value, authorized 20 million shares; issued and outstanding 1,600 shares as of December 31, 2023 and 2022 (Note 16)</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Common shares, $0.20 par value, authorized 3.6 billion shares; issued and outstanding 723 million shares as of December 31, 2023 and 743 million shares as of December 31, 2022 </td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="3"></td><td colspan="2">11,372 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="3"></td><td colspan="2">19,612 </td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive income (loss)</td><td colspan="3"></td><td colspan="2">(3,072)</td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="3"></td><td colspan="2">28,057 </td><td></td><td colspan="3"></td><td colspan="2">24,711 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td colspan="3"></td><td>$</td><td>261,108 </td><td></td><td colspan="3"></td><td>$</td><td>228,354 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 96 , CONSOLIDATED STATEMENTS OF CASH FLOWS <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Years Ended December 31 (Millions)</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash Flows from Operating Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td>$</td><td>8,374 </td><td></td><td colspan="3"></td><td>$</td><td>7,514 </td><td></td><td colspan="3"></td><td>$</td><td>8,060 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provisions for credit losses</td><td colspan="3"></td><td colspan="2">4,923 </td><td></td><td colspan="3"></td><td colspan="2">2,182 </td><td></td><td colspan="3"></td><td colspan="2">(1,419)</td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="3"></td><td colspan="2">1,651 </td><td></td><td colspan="3"></td><td colspan="2">1,626 </td><td></td><td colspan="3"></td><td colspan="2">1,695 </td><td></td></tr><tr><td colspan="3">Stock-based compensation</td><td colspan="3"></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">375 </td><td></td><td colspan="3"></td><td colspan="2">330 </td><td></td></tr><tr><td colspan="3">Deferred taxes</td><td colspan="3"></td><td colspan="2">(1,329)</td><td></td><td colspan="3"></td><td colspan="2">(1,189)</td><td></td><td colspan="3"></td><td colspan="2">294 </td><td></td></tr><tr><td colspan="3">Other items (a)</td><td colspan="3"></td><td colspan="2">664 </td><td></td><td colspan="3"></td><td colspan="2">365 </td><td></td><td colspan="3"></td><td colspan="2">(772)</td><td></td></tr><tr><td colspan="3">Originations of loans held-for-sale</td><td colspan="3"></td><td colspan="2">(54)</td><td></td><td colspan="3"></td><td colspan="2">(277)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Proceeds from sales of loans held-for-sale</td><td colspan="3"></td><td colspan="2">59 </td><td></td><td colspan="3"></td><td colspan="2">277 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="3"></td><td colspan="2">(1,244)</td><td></td><td colspan="3"></td><td colspan="2">1,391 </td><td></td><td colspan="3"></td><td colspan="2">1,068 </td><td></td></tr><tr><td colspan="3">Accounts payable &amp; other liabilities</td><td colspan="3"></td><td colspan="2">5,065 </td><td></td><td colspan="3"></td><td colspan="2">8,815 </td><td></td><td colspan="3"></td><td colspan="2">5,389 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="3"></td><td colspan="2">18,559 </td><td></td><td colspan="3"></td><td colspan="2">21,079 </td><td></td><td colspan="3"></td><td colspan="2">14,645 </td><td></td></tr><tr><td colspan="3">Cash Flows from Investing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Sale of investments</td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">26 </td><td></td><td colspan="3"></td><td colspan="2">62 </td><td></td></tr><tr><td colspan="3">Maturities and redemptions of investments</td><td colspan="3"></td><td colspan="2">3,888 </td><td></td><td colspan="3"></td><td colspan="2">1,892 </td><td></td><td colspan="3"></td><td colspan="2">20,032 </td><td></td></tr><tr><td colspan="3">Purchase of investments</td><td colspan="3"></td><td colspan="2">(1,572)</td><td></td><td colspan="3"></td><td colspan="2">(4,175)</td><td></td><td colspan="3"></td><td colspan="2">(1,517)</td><td></td></tr><tr><td colspan="3">Net increase in Card Member loans and receivables, and other loans (b)</td><td colspan="3"></td><td colspan="2">(25,124)</td><td></td><td colspan="3"></td><td colspan="2">(29,562)</td><td></td><td colspan="3"></td><td colspan="2">(27,557)</td><td></td></tr><tr><td colspan="3">Purchase of premises and equipment, net of sales: 2023, $2; 2022, $1; 2021, $88</td><td colspan="3"></td><td colspan="2">(1,563)</td><td></td><td colspan="3"></td><td colspan="2">(1,855)</td><td></td><td colspan="3"></td><td colspan="2">(1,550)</td><td></td></tr><tr><td colspan="3">Net (Acquisitions)/dispositions, net of cash acquired</td><td colspan="3"></td><td colspan="2">(64)</td><td></td><td colspan="3"></td><td colspan="2">(15)</td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net cash used in investing activities</td><td colspan="3"></td><td colspan="2">(24,433)</td><td></td><td colspan="3"></td><td colspan="2">(33,689)</td><td></td><td colspan="3"></td><td colspan="2">(10,529)</td><td></td></tr><tr><td colspan="3">Cash Flows from Financing Activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net increase (decrease) in customer deposits</td><td colspan="3"></td><td colspan="2">18,915 </td><td></td><td colspan="3"></td><td colspan="2">25,902 </td><td></td><td colspan="3"></td><td colspan="2">(2,468)</td><td></td></tr><tr><td colspan="3">Net (decrease) increase in short-term borrowings (b)</td><td colspan="3"></td><td colspan="2">(105)</td><td></td><td colspan="3"></td><td colspan="2">(706)</td><td></td><td colspan="3"></td><td colspan="2">461 </td><td></td></tr><tr><td colspan="3">Proceeds from long-term debt</td><td colspan="3"></td><td colspan="2">15,674 </td><td></td><td colspan="3"></td><td colspan="2">23,230 </td><td></td><td colspan="3"></td><td colspan="2">7,788 </td><td></td></tr><tr><td colspan="3">Payments of long-term debt</td><td colspan="3"></td><td colspan="2">(10,703)</td><td></td><td colspan="3"></td><td colspan="2">(18,906)</td><td></td><td colspan="3"></td><td colspan="2">(11,662)</td><td></td></tr><tr><td colspan="3">Issuance of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td></tr><tr><td colspan="3">Redemption of American Express preferred shares</td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td></tr><tr><td colspan="3">Issuance of American Express common shares</td><td colspan="3"></td><td colspan="2">28 </td><td></td><td colspan="3"></td><td colspan="2">56 </td><td></td><td colspan="3"></td><td colspan="2">64 </td><td></td></tr><tr><td colspan="3">Repurchase of American Express common shares and other</td><td colspan="3"></td><td colspan="2">(3,650)</td><td></td><td colspan="3"></td><td colspan="2">(3,502)</td><td></td><td colspan="3"></td><td colspan="2">(7,652)</td><td></td></tr><tr><td colspan="3">Dividends paid</td><td colspan="3"></td><td colspan="2">(1,780)</td><td></td><td colspan="3"></td><td colspan="2">(1,565)</td><td></td><td colspan="3"></td><td colspan="2">(1,448)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used in) financing activities</td><td colspan="3"></td><td colspan="2">18,379 </td><td></td><td colspan="3"></td><td colspan="2">24,509 </td><td></td><td colspan="3"></td><td colspan="2">(14,933)</td><td></td></tr><tr><td colspan="3">Effect of foreign currency exchange rates on cash and cash equivalents</td><td colspan="3"></td><td colspan="2">177 </td><td></td><td colspan="3"></td><td colspan="2">(13)</td><td></td><td colspan="3"></td><td colspan="2">(120)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash and cash equivalents</td><td colspan="3"></td><td colspan="2">12,682 </td><td></td><td colspan="3"></td><td colspan="2">11,886 </td><td></td><td colspan="3"></td><td colspan="2">(10,937)</td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at beginning of year</td><td colspan="3"></td><td colspan="2">33,914 </td><td></td><td colspan="3"></td><td colspan="2">22,028 </td><td></td><td colspan="3"></td><td colspan="2">32,965 </td><td></td></tr><tr><td colspan="3">Cash and cash equivalents at end of year</td><td colspan="3"></td><td>$</td><td>46,596 </td><td></td><td colspan="3"></td><td>$</td><td>33,914 </td><td></td><td colspan="3"></td><td>$</td><td>22,028 </td><td></td></tr></table>(a)Includes gains and losses on fair value hedges, losses on tax credit investments, net gains and losses on Amex Ventures investments and changes in equity method investments. (b)Excludes an increase of $117 million related to non-cash activity during 2023. Net income taxes paid during 2023, 2022 and 2021 were $3.3 billion, $3.0 billion and $1.6 billion, respectively, and interest paid primarily related to Debt and Customer deposits for the same periods were $6.4 billion, $2.2 billion and $1.1 billion, respectively. See Notes to Consolidated Financial Statements. 97 , CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">(Millions, except per share amounts)</td><td colspan="3"></td><td colspan="3">Total</td><td colspan="3"></td><td colspan="3">Preferred Shares</td><td colspan="3"></td><td colspan="3">Common Shares</td><td colspan="3"></td><td colspan="3">Additional Paid-in Capital</td><td colspan="3"></td><td colspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3">Retained Earnings</td></tr><tr><td colspan="3">Balances as of December 31, 2020</td><td colspan="3"></td><td>$</td><td>22,984 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>161 </td><td></td><td colspan="3"></td><td>$</td><td>11,881 </td><td></td><td colspan="3"></td><td>$</td><td>(2,895)</td><td></td><td colspan="3"></td><td>$</td><td>13,837 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,060 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,060 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Preferred shares issued</td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,584 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Redemption of preferred shares</td><td colspan="3"></td><td colspan="2">(1,600)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,584)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(16)</td><td></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(7,598)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(631)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(6,958)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">227 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td><td colspan="3"></td><td colspan="2">245 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(19)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series B, $36,419.41 per share</td><td colspan="3"></td><td colspan="2">(27)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(27)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series C, $26,317.47 per share</td><td colspan="3"></td><td colspan="2">(23)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(23)</td><td></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $13,213.89 per share</td><td colspan="3"></td><td colspan="2">(21)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(21)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $1.72 per share</td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,359)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2021</td><td colspan="3"></td><td colspan="2">22,177 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">11,495 </td><td></td><td colspan="3"></td><td colspan="2">(2,945)</td><td></td><td colspan="3"></td><td colspan="2">13,474 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">7,514 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">7,514 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss</td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(265)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,332)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(302)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,026)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">242 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">300 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(57)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(57)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.08 per share</td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,568)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2022</td><td colspan="3"></td><td colspan="2">24,711 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">149 </td><td></td><td colspan="3"></td><td colspan="2">11,493 </td><td></td><td colspan="3"></td><td colspan="2">(3,210)</td><td></td><td colspan="3"></td><td colspan="2">16,279 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="3"></td><td colspan="2">8,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">8,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">138 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Repurchase of common shares</td><td colspan="3"></td><td colspan="2">(3,519)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(334)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(3,181)</td><td></td></tr><tr><td colspan="3">Other changes, primarily employee plans</td><td colspan="3"></td><td colspan="2">181 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">213 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(32)</td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash dividends declared preferred Series D, $35,993.05 per share</td><td colspan="3"></td><td colspan="2">(58)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(58)</td><td></td></tr><tr><td colspan="3">Cash dividends declared common, $2.40 per share</td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,770)</td><td></td></tr><tr><td colspan="3">Balances as of December 31, 2023</td><td colspan="3"></td><td>$</td><td>28,057 </td><td></td><td colspan="3"></td><td>$</td><td>- </td><td></td><td colspan="3"></td><td>$</td><td>145 </td><td></td><td colspan="3"></td><td>$</td><td>11,372 </td><td></td><td colspan="3"></td><td>$</td><td>(3,072)</td><td></td><td colspan="3"></td><td>$</td><td>19,612 </td><td></td></tr></table> See Notes to Consolidated Financial Statements. 98 , DISCOVER FINANCIAL SERVICES Consolidated Statements of Financial Condition (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively)</td><td colspan="2">13,655 </td><td></td><td colspan="3"></td><td colspan="2">12,208 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Loan receivables</td><td colspan="2">128,409 </td><td></td><td colspan="3"></td><td colspan="2">112,120 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(9,283)</td><td></td><td colspan="3"></td><td colspan="2">(7,374)</td><td></td></tr><tr><td colspan="3">Net loan receivables</td><td colspan="2">119,126 </td><td></td><td colspan="3"></td><td colspan="2">104,746 </td><td></td></tr><tr><td colspan="3">Premises and equipment, net</td><td colspan="2">1,091 </td><td></td><td colspan="3"></td><td colspan="2">1,003 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">255 </td><td></td><td colspan="3"></td><td colspan="2">255 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Other assets</td><td colspan="2">5,667 </td><td></td><td colspan="3"></td><td colspan="2">4,597 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3">Liabilities and Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest-bearing deposit accounts</td><td>$</td><td>107,493 </td><td></td><td colspan="3"></td><td>$</td><td>90,151 </td><td></td></tr><tr><td colspan="3">Non-interest-bearing deposit accounts</td><td colspan="2">1,438 </td><td></td><td colspan="3"></td><td colspan="2">1,485 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">108,931 </td><td></td><td colspan="3"></td><td colspan="2">91,636 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">20,581 </td><td></td><td colspan="3"></td><td colspan="2">20,108 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td colspan="2">6,432 </td><td></td><td colspan="3"></td><td colspan="2">5,618 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">136,694 </td><td></td><td colspan="3"></td><td colspan="2">117,362 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees (Notes 15, 18 and 19)</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Stockholders' Equity</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td></tr><tr><td colspan="3">Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively</td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">4,553 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">30,448 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(225)</td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td></tr><tr><td colspan="3">Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively</td><td colspan="2">(21,010)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td></tr><tr><td colspan="3">Total stockholders' equity</td><td colspan="2">14,828 </td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Total liabilities and stockholders' equity</td><td>$</td><td>151,522 </td><td></td><td colspan="3"></td><td>$</td><td>131,706 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table>The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">December 31,</td></tr><tr><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Restricted cash</td><td>$</td><td>43 </td><td></td><td colspan="3"></td><td>$</td><td>41 </td><td></td></tr><tr><td colspan="3">Loan receivables</td><td>$</td><td>30,590 </td><td></td><td colspan="3"></td><td>$</td><td>25,937 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses allocated to securitized loan receivables</td><td>$</td><td>(1,347)</td><td></td><td colspan="3"></td><td>$</td><td>(1,152)</td><td></td></tr><tr><td colspan="3">Other assets</td><td>$</td><td>3 </td><td></td><td colspan="3"></td><td>$</td><td>3 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Short- and long-term borrowings</td><td>$</td><td>11,743 </td><td></td><td colspan="3"></td><td>$</td><td>10,259 </td><td></td></tr><tr><td colspan="3">Accrued expenses and other liabilities</td><td>$</td><td>19 </td><td></td><td colspan="3"></td><td>$</td><td>14 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -85- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Income (dollars in millions, except for share amounts)<table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Credit card loans</td><td>$</td><td>14,438 </td><td></td><td colspan="3"></td><td>$</td><td>10,632 </td><td></td><td colspan="3"></td><td>$</td><td>8,717 </td><td></td></tr><tr><td colspan="3">Other loans</td><td colspan="2">2,515 </td><td></td><td colspan="3"></td><td colspan="2">1,870 </td><td></td><td colspan="3"></td><td colspan="2">1,734 </td><td></td></tr><tr><td colspan="3">Investment securities</td><td colspan="2">449 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">182 </td><td></td></tr><tr><td colspan="3">Other interest income</td><td colspan="2">443 </td><td></td><td colspan="3"></td><td colspan="2">183 </td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td></tr><tr><td colspan="3">Total interest income</td><td colspan="2">17,845 </td><td></td><td colspan="3"></td><td colspan="2">12,864 </td><td></td><td colspan="3"></td><td colspan="2">10,651 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits</td><td colspan="2">3,886 </td><td></td><td colspan="3"></td><td colspan="2">1,257 </td><td></td><td colspan="3"></td><td colspan="2">661 </td><td></td></tr><tr><td colspan="3">Short-term borrowings</td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">2 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Long-term borrowings</td><td colspan="2">855 </td><td></td><td colspan="3"></td><td colspan="2">606 </td><td></td><td colspan="3"></td><td colspan="2">473 </td><td></td></tr><tr><td colspan="3">Total interest expense</td><td colspan="2">4,746 </td><td></td><td colspan="3"></td><td colspan="2">1,865 </td><td></td><td colspan="3"></td><td colspan="2">1,134 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">13,099 </td><td></td><td colspan="3"></td><td colspan="2">10,999 </td><td></td><td colspan="3"></td><td colspan="2">9,517 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Net interest income after provision for credit losses</td><td colspan="2">7,081 </td><td></td><td colspan="3"></td><td colspan="2">8,640 </td><td></td><td colspan="3"></td><td colspan="2">9,299 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Discount and interchange revenue, net</td><td colspan="2">1,447 </td><td></td><td colspan="3"></td><td colspan="2">1,380 </td><td></td><td colspan="3"></td><td colspan="2">1,188 </td><td></td></tr><tr><td colspan="3">Protection products revenue</td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">172 </td><td></td><td colspan="3"></td><td colspan="2">165 </td><td></td></tr><tr><td colspan="3">Loan fee income</td><td colspan="2">763 </td><td></td><td colspan="3"></td><td colspan="2">632 </td><td></td><td colspan="3"></td><td colspan="2">464 </td><td></td></tr><tr><td colspan="3">Transaction processing revenue</td><td colspan="2">303 </td><td></td><td colspan="3"></td><td colspan="2">249 </td><td></td><td colspan="3"></td><td colspan="2">227 </td><td></td></tr><tr><td colspan="3">(Losses) gains on equity investments</td><td colspan="2">(9)</td><td></td><td colspan="3"></td><td colspan="2">(214)</td><td></td><td colspan="3"></td><td colspan="2">424 </td><td></td></tr><tr><td colspan="3">Other income</td><td colspan="2">85 </td><td></td><td colspan="3"></td><td colspan="2">75 </td><td></td><td colspan="3"></td><td colspan="2">66 </td><td></td></tr><tr><td colspan="3">Total other income</td><td colspan="2">2,761 </td><td></td><td colspan="3"></td><td colspan="2">2,294 </td><td></td><td colspan="3"></td><td colspan="2">2,534 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Employee compensation and benefits</td><td colspan="2">2,434 </td><td></td><td colspan="3"></td><td colspan="2">2,139 </td><td></td><td colspan="3"></td><td colspan="2">1,986 </td><td></td></tr><tr><td colspan="3">Marketing and business development</td><td colspan="2">1,164 </td><td></td><td colspan="3"></td><td colspan="2">1,035 </td><td></td><td colspan="3"></td><td colspan="2">810 </td><td></td></tr><tr><td colspan="3">Information processing and communications</td><td colspan="2">608 </td><td></td><td colspan="3"></td><td colspan="2">513 </td><td></td><td colspan="3"></td><td colspan="2">500 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">1,041 </td><td></td><td colspan="3"></td><td colspan="2">871 </td><td></td><td colspan="3"></td><td colspan="2">797 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">92 </td><td></td></tr><tr><td colspan="3">Other expense</td><td colspan="2">680 </td><td></td><td colspan="3"></td><td colspan="2">540 </td><td></td><td colspan="3"></td><td colspan="2">620 </td><td></td></tr><tr><td colspan="3">Total other expense</td><td colspan="2">6,016 </td><td></td><td colspan="3"></td><td colspan="2">5,216 </td><td></td><td colspan="3"></td><td colspan="2">4,805 </td><td></td></tr><tr><td colspan="3">Income before income taxes</td><td colspan="2">3,826 </td><td></td><td colspan="3"></td><td colspan="2">5,718 </td><td></td><td colspan="3"></td><td colspan="2">7,028 </td><td></td></tr><tr><td colspan="3">Income tax expense</td><td colspan="2">886 </td><td></td><td colspan="3"></td><td colspan="2">1,344 </td><td></td><td colspan="3"></td><td colspan="2">1,606 </td><td></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Net income allocated to common stockholders</td><td>$</td><td>2,859 </td><td></td><td colspan="3"></td><td>$</td><td>4,286 </td><td></td><td colspan="3"></td><td>$</td><td>5,323 </td><td></td></tr><tr><td colspan="3">Basic earnings per common share</td><td>$</td><td>11.27 </td><td></td><td colspan="3"></td><td>$</td><td>15.45 </td><td></td><td colspan="3"></td><td>$</td><td>17.75 </td><td></td></tr><tr><td colspan="3">Diluted earnings per common share</td><td>$</td><td>11.26 </td><td></td><td colspan="3"></td><td>$</td><td>15.44 </td><td></td><td colspan="3"></td><td>$</td><td>17.74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -86- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Comprehensive Income (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss), net of tax</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Unrealized gains (losses) on available-for-sale investment securities, net of tax</td><td colspan="2">99 </td><td></td><td colspan="3"></td><td colspan="2">(250)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Unrealized gains (losses) on cash flow hedges, net of tax</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">(5)</td><td></td><td colspan="3"></td><td colspan="2">3 </td><td></td></tr><tr><td colspan="3">Unrealized pension and post-retirement plan gains, net of tax</td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other comprehensive income (loss)</td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,054 </td><td></td><td colspan="3"></td><td>$</td><td>4,129 </td><td></td><td colspan="3"></td><td>$</td><td>5,283 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -87- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Changes in Stockholders' Equity (dollars in millions, shares in thousands) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="9" rowspan="2">Preferred Stock</td><td colspan="3"></td><td colspan="9" rowspan="2">Common Stock</td><td colspan="3"></td><td colspan="3" rowspan="3">AdditionalPaid-inCapital</td><td colspan="3"></td><td colspan="3" rowspan="3">RetainedEarnings</td><td colspan="3"></td><td colspan="3" rowspan="3">Accumulated Other Comprehensive Income (Loss)</td><td colspan="3"></td><td colspan="3" rowspan="3">TreasuryStock</td><td colspan="3"></td><td colspan="3" rowspan="3">TotalStockholders'Equity</td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3">Shares</td><td colspan="3"></td><td colspan="3">Amount</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Balance at December 31, 2020</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">567,898 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,257 </td><td></td><td colspan="3"></td><td>$</td><td>19,754 </td><td></td><td colspan="3"></td><td>$</td><td>45 </td><td></td><td colspan="3"></td><td>$</td><td>(14,435)</td><td></td><td colspan="3"></td><td>$</td><td>10,683 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5,422 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(139)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">88 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">845 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">103 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($1.88 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(569)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($7,674 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(38)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2021</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">568,831 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,369 </td><td></td><td colspan="3"></td><td colspan="2">24,538 </td><td></td><td colspan="3"></td><td colspan="2">(94)</td><td></td><td colspan="3"></td><td colspan="2">(16,695)</td><td></td><td colspan="3"></td><td colspan="2">13,180 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">4,374 </td><td></td></tr><tr><td colspan="3">Other comprehensive loss </td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(245)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">107 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">751 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">89 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.30 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(643)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2022</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">1,056 </td><td></td><td colspan="3"></td><td colspan="2">569,689 </td><td></td><td colspan="3"></td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">4,468 </td><td></td><td colspan="3"></td><td colspan="2">28,207 </td><td></td><td colspan="3"></td><td colspan="2">(339)</td><td></td><td colspan="3"></td><td colspan="2">(19,054)</td><td></td><td colspan="3"></td><td colspan="2">14,344 </td><td></td></tr><tr><td colspan="3">Cumulative effect of ASU No. 2022-02 adoption</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">52 </td><td></td></tr><tr><td colspan="3">Net income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,940 </td><td></td></tr><tr><td colspan="3">Other comprehensive income</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">114 </td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td><td colspan="3"></td><td colspan="2">(1,956)</td><td></td></tr><tr><td colspan="3">Common stock issued under employee benefit plans</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">118 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">11 </td><td></td></tr><tr><td colspan="3">Common stock issued and stock-based compensation expense</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">1,031 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">74 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends - common stock ($2.70 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(689)</td><td></td></tr><tr><td colspan="3">Dividends - Series C preferred stock ($5,500 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Dividends - Series D preferred stock ($6,125 per share)</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">(31)</td><td></td></tr><tr><td colspan="3">Balance at December 31, 2023</td><td colspan="2">11 </td><td></td><td colspan="3"></td><td>$</td><td>1,056 </td><td></td><td colspan="3"></td><td colspan="2">570,838 </td><td></td><td colspan="3"></td><td>$</td><td>6 </td><td></td><td colspan="3"></td><td>$</td><td>4,553 </td><td></td><td colspan="3"></td><td>$</td><td>30,448 </td><td></td><td colspan="3"></td><td>$</td><td>(225)</td><td></td><td colspan="3"></td><td>$</td><td>(21,010)</td><td></td><td colspan="3"></td><td>$</td><td>14,828 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -88- , DISCOVER FINANCIAL SERVICES Consolidated Statements of Cash Flows (dollars in millions) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"> </td><td colspan="15">For the Years Ended December 31,</td></tr><tr><td colspan="3"> </td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2022</td><td colspan="3"></td><td colspan="3">2021</td></tr><tr><td colspan="3">Cash flows provided by operating activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net income</td><td>$</td><td>2,940 </td><td></td><td colspan="3"></td><td>$</td><td>4,374 </td><td></td><td colspan="3"></td><td>$</td><td>5,422 </td><td></td></tr><tr><td colspan="3">Adjustments to reconcile net income to net cash provided by operating activities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">6,018 </td><td></td><td colspan="3"></td><td colspan="2">2,359 </td><td></td><td colspan="3"></td><td colspan="2">218 </td><td></td></tr><tr><td colspan="3">Deferred income taxes</td><td colspan="2">(626)</td><td></td><td colspan="3"></td><td colspan="2">(433)</td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">458 </td><td></td><td colspan="3"></td><td colspan="2">561 </td><td></td><td colspan="3"></td><td colspan="2">531 </td><td></td></tr><tr><td colspan="3">Amortization of deferred revenues</td><td colspan="2">(468)</td><td></td><td colspan="3"></td><td colspan="2">(365)</td><td></td><td colspan="3"></td><td colspan="2">(295)</td><td></td></tr><tr><td colspan="3">Net losses (gains) on investments and other assets</td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">261 </td><td></td><td colspan="3"></td><td colspan="2">(382)</td><td></td></tr><tr><td colspan="3">Other, net</td><td colspan="2">110 </td><td></td><td colspan="3"></td><td colspan="2">125 </td><td></td><td colspan="3"></td><td colspan="2">257 </td><td></td></tr><tr><td colspan="3">Changes in assets and liabilities:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Increase in other assets</td><td colspan="2">(658)</td><td></td><td colspan="3"></td><td colspan="2">(846)</td><td></td><td colspan="3"></td><td colspan="2">(496)</td><td></td></tr><tr><td colspan="3">Increase in accrued expenses and other liabilities</td><td colspan="2">739 </td><td></td><td colspan="3"></td><td colspan="2">1,104 </td><td></td><td colspan="3"></td><td colspan="2">446 </td><td></td></tr><tr><td colspan="3">Net cash provided by operating activities</td><td colspan="2">8,563 </td><td></td><td colspan="3"></td><td colspan="2">7,140 </td><td></td><td colspan="3"></td><td colspan="2">6,019 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows provided by (used for) investing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of other short-term investments</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">2,200 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Maturities of available-for-sale investment securities</td><td colspan="2">1,831 </td><td></td><td colspan="3"></td><td colspan="2">2,084 </td><td></td><td colspan="3"></td><td colspan="2">2,727 </td><td></td></tr><tr><td colspan="3">Purchases of available-for-sale investment securities</td><td colspan="2">(2,996)</td><td></td><td colspan="3"></td><td colspan="2">(7,682)</td><td></td><td colspan="3"></td><td colspan="2">(9)</td><td></td></tr><tr><td colspan="3">Maturities of held-to-maturity investment securities</td><td colspan="2">16 </td><td></td><td colspan="3"></td><td colspan="2">32 </td><td></td><td colspan="3"></td><td colspan="2">82 </td><td></td></tr><tr><td colspan="3">Purchases of held-to-maturity investment securities</td><td colspan="2">(49)</td><td></td><td colspan="3"></td><td colspan="2">(50)</td><td></td><td colspan="3"></td><td colspan="2">(28)</td><td></td></tr><tr><td colspan="3">Net change in principal on loans originated for investment</td><td colspan="2">(19,934)</td><td></td><td colspan="3"></td><td colspan="2">(19,961)</td><td></td><td colspan="3"></td><td colspan="2">(4,574)</td><td></td></tr><tr><td colspan="3">Proceeds from the sale of available for sale securities</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">5 </td><td></td></tr><tr><td colspan="3">Proceeds from the sale of other investments</td><td colspan="2">44 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="3"></td><td colspan="2">1 </td><td></td></tr><tr><td colspan="3">Purchases of other investments</td><td colspan="2">(100)</td><td></td><td colspan="3"></td><td colspan="2">(169)</td><td></td><td colspan="3"></td><td colspan="2">(170)</td><td></td></tr><tr><td colspan="3">Proceeds from sale of premises and equipment</td><td colspan="2">- </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Purchases of premises and equipment</td><td colspan="2">(303)</td><td></td><td colspan="3"></td><td colspan="2">(236)</td><td></td><td colspan="3"></td><td colspan="2">(194)</td><td></td></tr><tr><td colspan="3">Net cash (used for) provided by investing activities</td><td colspan="2">(21,491)</td><td></td><td colspan="3"></td><td colspan="2">(25,637)</td><td></td><td colspan="3"></td><td colspan="2">40 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash flows (used for) provided by financing activities</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Net change in short-term borrowings</td><td colspan="2">750 </td><td></td><td colspan="3"></td><td colspan="2">(1,750)</td><td></td><td colspan="3"></td><td colspan="2">1,750 </td><td></td></tr><tr><td colspan="3">Net change in deposits</td><td colspan="2">17,250 </td><td></td><td colspan="3"></td><td colspan="2">19,208 </td><td></td><td colspan="3"></td><td colspan="2">(4,533)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of securitized debt</td><td colspan="2">2,230 </td><td></td><td colspan="3"></td><td colspan="2">5,620 </td><td></td><td colspan="3"></td><td colspan="2">1,727 </td><td></td></tr><tr><td colspan="3">Maturities and repayment of securitized debt</td><td colspan="2">(1,494)</td><td></td><td colspan="3"></td><td colspan="2">(4,395)</td><td></td><td colspan="3"></td><td colspan="2">(3,451)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of other long-term borrowings</td><td colspan="2">2,041 </td><td></td><td colspan="3"></td><td colspan="2">1,265 </td><td></td><td colspan="3"></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Maturities and repayments of other long-term borrowings</td><td colspan="2">(2,340)</td><td></td><td colspan="3"></td><td colspan="2">(834)</td><td></td><td colspan="3"></td><td colspan="2">(922)</td><td></td></tr><tr><td colspan="3">Proceeds from issuance of common stock</td><td colspan="2">12 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Dividends paid on common and preferred stock</td><td colspan="2">(752)</td><td></td><td colspan="3"></td><td colspan="2">(703)</td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td></tr><tr><td colspan="3">Purchases of treasury stock</td><td colspan="2">(1,938)</td><td></td><td colspan="3"></td><td colspan="2">(2,359)</td><td></td><td colspan="3"></td><td colspan="2">(2,260)</td><td></td></tr><tr><td colspan="3">Net cash provided by (used for) financing activities</td><td colspan="2">15,759 </td><td></td><td colspan="3"></td><td colspan="2">16,062 </td><td></td><td colspan="3"></td><td colspan="2">(8,316)</td><td></td></tr><tr><td colspan="3">Net increase (decrease) in cash, cash equivalents and restricted cash</td><td colspan="2">2,831 </td><td></td><td colspan="3"></td><td colspan="2">(2,435)</td><td></td><td colspan="3"></td><td colspan="2">(2,257)</td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the beginning of the period</td><td colspan="2">8,897 </td><td></td><td colspan="3"></td><td colspan="2">11,332 </td><td></td><td colspan="3"></td><td colspan="2">13,589 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Reconciliation of cash, cash equivalents and restricted cash</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>11,685 </td><td></td><td colspan="3"></td><td>$</td><td>8,856 </td><td></td><td colspan="3"></td><td>$</td><td>8,750 </td><td></td></tr><tr><td colspan="3">Restricted cash</td><td colspan="2">43 </td><td></td><td colspan="3"></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">2,582 </td><td></td></tr><tr><td colspan="3">Cash, cash equivalents and restricted cash, at the end of the period</td><td>$</td><td>11,728 </td><td></td><td colspan="3"></td><td>$</td><td>8,897 </td><td></td><td colspan="3"></td><td>$</td><td>11,332 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Supplemental disclosures of cash flow information:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash paid during the period for:</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest expense</td><td>$</td><td>4,508 </td><td></td><td colspan="3"></td><td>$</td><td>1,666 </td><td></td><td colspan="3"></td><td>$</td><td>1,077 </td><td></td></tr><tr><td colspan="3">Income taxes, net of income tax refunds</td><td>$</td><td>1,605 </td><td></td><td colspan="3"></td><td>$</td><td>1,865 </td><td></td><td colspan="3"></td><td>$</td><td>1,305 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr></table> See Notes to the Consolidated Financial Statements. -89-
q_com123
What is the growth rate in net earnings for Goldman Sachs and Bank of New York Mellon for the six months ended June 30, 2024, compared to the same period in 2023?
The percentage change in net earnings for Goldman Sachs for the six months ended June 2024 compared to the same period in 2023 is calculated as follows: Net Earnings 2024: $7,175 million Net Earnings 2023: $4,450 million Percentage Change = ((7,175 - 4,450) / 4,450) * 100 = 61.24% The percentage change in net earnings for Bank of New York Mellon for the six months ended June 2024 compared to the same period in 2023 is calculated as follows: Net Income 2024: $2,197 million Net Income 2023: $2,055 million Percentage Change = ((2,197 - 2,055) / 2,055) * 100 = 6.91%
Comparison
1;49
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 1: PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------|:-----------------------|:------|:---------------------|:-------|:------|:------|:-------|:---|:-------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | in millions, except per share amounts | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Revenues | | | | | | | | | | | | | 5 | Investment banking | $ | 1,733 | | | $ | 1,432 | | $ | 3,818 | $ | 3,010 | | 6 | Investment management | 2,533 | | | 2,356 | | | 5,024 | | 4,645 | | | | 7 | Commissions and fees | 1,051 | | | 893 | | | 2,128 | | 1,981 | | | | 8 | Market making | 4,225 | | | 4,351 | | | 10,217 | | 9,784 | | | | 9 | Other principal transactions | 947 | | | 179 | | | 1,907 | | 234 | | | | 10 | Total non-interest revenues | 10,489 | | | 9,211 | | | 23,094 | | 19,654 | | | | 12 | Interest income | 20,440 | | | 16,836 | | | 39,995 | | 31,774 | | | | 13 | Interest expense | 18,198 | | | 15,152 | | | 36,145 | | 28,309 | | | | 14 | Net interest income | 2,242 | | | 1,684 | | | 3,850 | | 3,465 | | | | 15 | Total net revenues | 12,731 | | | 10,895 | | | 26,944 | | 23,119 | | | | 16 | Provision for credit losses | 282 | | | 615 | | | 600 | | 444 | | | | 17 | Operating expenses | | | | | | | | | | | | | 18 | Compensation and benefits | 4,240 | | | 3,619 | | | 8,825 | | 7,709 | | | | 19 | Transaction based | 1,654 | | | 1,385 | | | 3,151 | | 2,790 | | | | 20 | Market development | 153 | | | 146 | | | 306 | | 318 | | | | 21 | Communications and technology | 500 | | | 482 | | | 970 | | 948 | | | | 22 | Depreciation and amortization | 646 | | | 1,594 | | | 1,273 | | 2,564 | | | | 23 | Occupancy | 244 | | | 253 | | | 491 | | 518 | | | | 24 | Professional fees | 393 | | | 392 | | | 777 | | 775 | | | | 25 | Other expenses | 703 | | | 673 | | | 1,398 | | 1,324 | | | | 26 | Total operating expenses | 8,533 | | | 8,544 | | | 17,191 | | 16,946 | | | | 28 | Pre-tax earnings | 3,916 | | | 1,736 | | | 9,153 | | 5,729 | | | | 29 | Provision for taxes | 873 | | | 520 | | | 1,978 | | 1,279 | | | | 30 | Net earnings | 3,043 | | | 1,216 | | | 7,175 | | 4,450 | | | | 31 | Preferred stock dividends | 152 | | | 145 | | | 353 | | 292 | | | | 32 | Net earnings applicable to common shareholders | $ | 2,891 | | | $ | 1,071 | | $ | 6,822 | $ | 4,158 | | 34 | Earnings per common share | | | | | | | | | | | | | 35 | Basic | $ | 8.73 | | | $ | 3.09 | | $ | 20.44 | $ | 12.00 | | 36 | Diluted | $ | 8.62 | | | $ | 3.08 | | $ | 20.21 | $ | 11.91 | | 38 | Average common shares | | | | | | | | | | | | | 39 | Basic | 329.8 | | 342.3 | | 332.6 | | 344.4 | | | | | | 40 | Diluted | 335.5 | | 347.2 | | 337.5 | | 349.2 | | | | | Consolidated Statements of Comprehensive Income (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------|:-----------------------|:------|:---------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | $ in millions | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Net earnings | $ | 3,043 | | | $ | 1,216 | | $ | 7,175 | $ | 4,450 | | 5 | Other comprehensive income/(loss) adjustments, net of tax: | | | | | | | | | | | | | 6 | Currency translation | (4) | | | (12) | | | 22 | | (43) | | | | 7 | Debt valuation adjustment | 268 | | | (610) | | | (288) | | (611) | | | | 8 | Pension and postretirement liabilities | 6 | | | 10 | | | 22 | | 24 | | | | 9 | Available-for-sale securities | 147 | | | (24) | | | 262 | | 403 | | | | 10 | Other comprehensive income/(loss) | 417 | | | (636) | | | 18 | | (227) | | | | 11 | Comprehensive income | $ | 3,460 | | | $ | 580 | | $ | 7,193 | $ | 4,223 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|---:|:----------------------------------| | 1 | 1 | Goldman Sachs June 2024 Form 10-Q | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 49: | | | |---:|:---------------------------------------------------------------| | 1 | Item 1. Financial Statements | | 2 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Income Statement (unaudited) | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------|:--------------|:---------------|:--------------|:---|:--------------|:--------------|:---|:-------|:------|:---|:------|:---|:------| | 1 | | Quarter ended | | Year-to-date | | | | | | | | | | | | 2 | | June 30, 2024 | March 31, 2024 | June 30, 2023 | | June 30, 2024 | June 30, 2023 | | | | | | | | | 3 | (in millions) | | | | | | | | | | | | | | | 4 | Fee and other revenue | | | | | | | | | | | | | | | 5 | Investment services fees | $ | 2,359 | | $ | 2,278 | | $ | 2,252 | | $ | 4,637 | $ | 4,371 | | 6 | Investment management and performance fees | 761 | | 776 | | 762 | | | 1,537 | 1,538 | | | | | | 7 | Foreign exchange revenue | 184 | | 152 | | 158 | | | 336 | 334 | | | | | | 8 | Financing-related fees | 53 | | 57 | | 50 | | | 110 | 102 | | | | | | 9 | Distribution and servicing fees | 41 | | 42 | | 35 | | | 83 | 68 | | | | | | 10 | Total fee revenue | 3,398 | | 3,305 | | 3,257 | | | 6,703 | 6,413 | | | | | | 11 | Investment and other revenue (a) | 169 | | 182 | | 147 | | | 351 | 278 | | | | | | 12 | Total fee and other revenue (a) | 3,567 | | 3,487 | | 3,404 | | | 7,054 | 6,691 | | | | | | 13 | Net interest income | | | | | | | | | | | | | | | 14 | Interest income | 6,392 | | 6,096 | | 5,224 | | | 12,488 | 9,166 | | | | | | 15 | Interest expense | 5,362 | | 5,056 | | 4,124 | | | 10,418 | 6,938 | | | | | | 16 | Net interest income | 1,030 | | 1,040 | | 1,100 | | | 2,070 | 2,228 | | | | | | 17 | Total revenue (a) | 4,597 | | 4,527 | | 4,504 | | | 9,124 | 8,919 | | | | | | 18 | Provision for credit losses | - | | 27 | | 5 | | | 27 | 32 | | | | | | 19 | Noninterest expense | | | | | | | | | | | | | | | 20 | Staff | 1,720 | | 1,857 | | 1,718 | | | 3,577 | 3,509 | | | | | | 21 | Software and equipment | 476 | | 475 | | 450 | | | 951 | 879 | | | | | | 22 | Professional, legal and other purchased services | 374 | | 349 | | 378 | | | 723 | 753 | | | | | | 23 | Net occupancy | 134 | | 124 | | 121 | | | 258 | 240 | | | | | | 24 | Sub-custodian and clearing | 134 | | 119 | | 119 | | | 253 | 237 | | | | | | 25 | Distribution and servicing | 88 | | 96 | | 93 | | | 184 | 178 | | | | | | 26 | Business development | 50 | | 36 | | 47 | | | 86 | 86 | | | | | | 27 | Bank assessment charges | (7) | | 17 | | 41 | | | 10 | 81 | | | | | | 29 | Amortization of intangible assets | 13 | | 12 | | 14 | | | 25 | 28 | | | | | | 30 | Other | 88 | | 91 | | 130 | | | 179 | 220 | | | | | | 31 | Total noninterest expense | 3,070 | | 3,176 | | 3,111 | | | 6,246 | 6,211 | | | | | | 32 | Income | | | | | | | | | | | | | | | 33 | Income before income taxes (a) | 1,527 | | 1,324 | | 1,388 | | | 2,851 | 2,676 | | | | | | 34 | Provision for income taxes (a) | 357 | | 297 | | 315 | | | 654 | 621 | | | | | | 35 | Net income (a) | 1,170 | | 1,027 | | 1,073 | | | 2,197 | 2,055 | | | | | | 36 | Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (2) | | (2) | | (1) | | | (4) | (1) | | | | | | 37 | Net income applicable to shareholders of The Bank of New York Mellon Corporation (a) | 1,168 | | 1,025 | | 1,072 | | | 2,193 | 2,054 | | | | | | 38 | Preferred stock dividends | (25) | | (72) | | (36) | | | (97) | (107) | | | | | | 39 | Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a) | $ | 1,143 | | $ | 953 | | $ | 1,036 | | $ | 2,096 | $ | 1,947 | (a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------|:-----------------------|:------|:---------------------|:-------|:------|:------|:-------|:---|:-------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | in millions, except per share amounts | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Revenues | | | | | | | | | | | | | 5 | Investment banking | $ | 1,733 | | | $ | 1,432 | | $ | 3,818 | $ | 3,010 | | 6 | Investment management | 2,533 | | | 2,356 | | | 5,024 | | 4,645 | | | | 7 | Commissions and fees | 1,051 | | | 893 | | | 2,128 | | 1,981 | | | | 8 | Market making | 4,225 | | | 4,351 | | | 10,217 | | 9,784 | | | | 9 | Other principal transactions | 947 | | | 179 | | | 1,907 | | 234 | | | | 10 | Total non-interest revenues | 10,489 | | | 9,211 | | | 23,094 | | 19,654 | | | | 12 | Interest income | 20,440 | | | 16,836 | | | 39,995 | | 31,774 | | | | 13 | Interest expense | 18,198 | | | 15,152 | | | 36,145 | | 28,309 | | | | 14 | Net interest income | 2,242 | | | 1,684 | | | 3,850 | | 3,465 | | | | 15 | Total net revenues | 12,731 | | | 10,895 | | | 26,944 | | 23,119 | | | | 16 | Provision for credit losses | 282 | | | 615 | | | 600 | | 444 | | | | 17 | Operating expenses | | | | | | | | | | | | | 18 | Compensation and benefits | 4,240 | | | 3,619 | | | 8,825 | | 7,709 | | | | 19 | Transaction based | 1,654 | | | 1,385 | | | 3,151 | | 2,790 | | | | 20 | Market development | 153 | | | 146 | | | 306 | | 318 | | | | 21 | Communications and technology | 500 | | | 482 | | | 970 | | 948 | | | | 22 | Depreciation and amortization | 646 | | | 1,594 | | | 1,273 | | 2,564 | | | | 23 | Occupancy | 244 | | | 253 | | | 491 | | 518 | | | | 24 | Professional fees | 393 | | | 392 | | | 777 | | 775 | | | | 25 | Other expenses | 703 | | | 673 | | | 1,398 | | 1,324 | | | | 26 | Total operating expenses | 8,533 | | | 8,544 | | | 17,191 | | 16,946 | | | | 28 | Pre-tax earnings | 3,916 | | | 1,736 | | | 9,153 | | 5,729 | | | | 29 | Provision for taxes | 873 | | | 520 | | | 1,978 | | 1,279 | | | | 30 | Net earnings | 3,043 | | | 1,216 | | | 7,175 | | 4,450 | | | | 31 | Preferred stock dividends | 152 | | | 145 | | | 353 | | 292 | | | | 32 | Net earnings applicable to common shareholders | $ | 2,891 | | | $ | 1,071 | | $ | 6,822 | $ | 4,158 | | 34 | Earnings per common share | | | | | | | | | | | | | 35 | Basic | $ | 8.73 | | | $ | 3.09 | | $ | 20.44 | $ | 12.00 | | 36 | Diluted | $ | 8.62 | | | $ | 3.08 | | $ | 20.21 | $ | 11.91 | | 38 | Average common shares | | | | | | | | | | | | | 39 | Basic | 329.8 | | 342.3 | | 332.6 | | 344.4 | | | | | | 40 | Diluted | 335.5 | | 347.2 | | 337.5 | | 349.2 | | | | | Consolidated Statements of Comprehensive Income (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------|:-----------------------|:------|:---------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | $ in millions | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Net earnings | $ | 3,043 | | | $ | 1,216 | | $ | 7,175 | $ | 4,450 | | 5 | Other comprehensive income/(loss) adjustments, net of tax: | | | | | | | | | | | | | 6 | Currency translation | (4) | | | (12) | | | 22 | | (43) | | | | 7 | Debt valuation adjustment | 268 | | | (610) | | | (288) | | (611) | | | | 8 | Pension and postretirement liabilities | 6 | | | 10 | | | 22 | | 24 | | | | 9 | Available-for-sale securities | 147 | | | (24) | | | 262 | | 403 | | | | 10 | Other comprehensive income/(loss) | 417 | | | (636) | | | 18 | | (227) | | | | 11 | Comprehensive income | $ | 3,460 | | | $ | 580 | | $ | 7,193 | $ | 4,223 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|---:|:----------------------------------| | 1 | 1 | Goldman Sachs June 2024 Form 10-Q | , | | | |---:|:---------------------------------------------------------------| | 1 | Item 1. Financial Statements | | 2 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Income Statement (unaudited) | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------|:--------------|:---------------|:--------------|:---|:--------------|:--------------|:---|:-------|:------|:---|:------|:---|:------| | 1 | | Quarter ended | | Year-to-date | | | | | | | | | | | | 2 | | June 30, 2024 | March 31, 2024 | June 30, 2023 | | June 30, 2024 | June 30, 2023 | | | | | | | | | 3 | (in millions) | | | | | | | | | | | | | | | 4 | Fee and other revenue | | | | | | | | | | | | | | | 5 | Investment services fees | $ | 2,359 | | $ | 2,278 | | $ | 2,252 | | $ | 4,637 | $ | 4,371 | | 6 | Investment management and performance fees | 761 | | 776 | | 762 | | | 1,537 | 1,538 | | | | | | 7 | Foreign exchange revenue | 184 | | 152 | | 158 | | | 336 | 334 | | | | | | 8 | Financing-related fees | 53 | | 57 | | 50 | | | 110 | 102 | | | | | | 9 | Distribution and servicing fees | 41 | | 42 | | 35 | | | 83 | 68 | | | | | | 10 | Total fee revenue | 3,398 | | 3,305 | | 3,257 | | | 6,703 | 6,413 | | | | | | 11 | Investment and other revenue (a) | 169 | | 182 | | 147 | | | 351 | 278 | | | | | | 12 | Total fee and other revenue (a) | 3,567 | | 3,487 | | 3,404 | | | 7,054 | 6,691 | | | | | | 13 | Net interest income | | | | | | | | | | | | | | | 14 | Interest income | 6,392 | | 6,096 | | 5,224 | | | 12,488 | 9,166 | | | | | | 15 | Interest expense | 5,362 | | 5,056 | | 4,124 | | | 10,418 | 6,938 | | | | | | 16 | Net interest income | 1,030 | | 1,040 | | 1,100 | | | 2,070 | 2,228 | | | | | | 17 | Total revenue (a) | 4,597 | | 4,527 | | 4,504 | | | 9,124 | 8,919 | | | | | | 18 | Provision for credit losses | - | | 27 | | 5 | | | 27 | 32 | | | | | | 19 | Noninterest expense | | | | | | | | | | | | | | | 20 | Staff | 1,720 | | 1,857 | | 1,718 | | | 3,577 | 3,509 | | | | | | 21 | Software and equipment | 476 | | 475 | | 450 | | | 951 | 879 | | | | | | 22 | Professional, legal and other purchased services | 374 | | 349 | | 378 | | | 723 | 753 | | | | | | 23 | Net occupancy | 134 | | 124 | | 121 | | | 258 | 240 | | | | | | 24 | Sub-custodian and clearing | 134 | | 119 | | 119 | | | 253 | 237 | | | | | | 25 | Distribution and servicing | 88 | | 96 | | 93 | | | 184 | 178 | | | | | | 26 | Business development | 50 | | 36 | | 47 | | | 86 | 86 | | | | | | 27 | Bank assessment charges | (7) | | 17 | | 41 | | | 10 | 81 | | | | | | 29 | Amortization of intangible assets | 13 | | 12 | | 14 | | | 25 | 28 | | | | | | 30 | Other | 88 | | 91 | | 130 | | | 179 | 220 | | | | | | 31 | Total noninterest expense | 3,070 | | 3,176 | | 3,111 | | | 6,246 | 6,211 | | | | | | 32 | Income | | | | | | | | | | | | | | | 33 | Income before income taxes (a) | 1,527 | | 1,324 | | 1,388 | | | 2,851 | 2,676 | | | | | | 34 | Provision for income taxes (a) | 357 | | 297 | | 315 | | | 654 | 621 | | | | | | 35 | Net income (a) | 1,170 | | 1,027 | | 1,073 | | | 2,197 | 2,055 | | | | | | 36 | Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (2) | | (2) | | (1) | | | (4) | (1) | | | | | | 37 | Net income applicable to shareholders of The Bank of New York Mellon Corporation (a) | 1,168 | | 1,025 | | 1,072 | | | 2,193 | 2,054 | | | | | | 38 | Preferred stock dividends | (25) | | (72) | | (36) | | | (97) | (107) | | | | | | 39 | Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a) | $ | 1,143 | | $ | 953 | | $ | 1,036 | | $ | 2,096 | $ | 1,947 | (a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 1: PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking</td><td>$</td><td>1,733 </td><td></td><td colspan="3"></td><td>$</td><td>1,432 </td><td></td><td colspan="3"></td><td>$</td><td>3,818 </td><td></td><td colspan="3"></td><td>$</td><td>3,010 </td><td></td></tr><tr><td colspan="3">Investment management</td><td colspan="2">2,533 </td><td></td><td colspan="3"></td><td colspan="2">2,356 </td><td></td><td colspan="3"></td><td colspan="2">5,024 </td><td></td><td colspan="3"></td><td colspan="2">4,645 </td><td></td></tr><tr><td colspan="3">Commissions and fees</td><td colspan="2">1,051 </td><td></td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">2,128 </td><td></td><td colspan="3"></td><td colspan="2">1,981 </td><td></td></tr><tr><td colspan="3">Market making</td><td colspan="2">4,225 </td><td></td><td colspan="3"></td><td colspan="2">4,351 </td><td></td><td colspan="3"></td><td colspan="2">10,217 </td><td></td><td colspan="3"></td><td colspan="2">9,784 </td><td></td></tr><tr><td colspan="3">Other principal transactions</td><td colspan="2">947 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">1,907 </td><td></td><td colspan="3"></td><td colspan="2">234 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="2">10,489 </td><td></td><td colspan="3"></td><td colspan="2">9,211 </td><td></td><td colspan="3"></td><td colspan="2">23,094 </td><td></td><td colspan="3"></td><td colspan="2">19,654 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">20,440 </td><td></td><td colspan="3"></td><td colspan="2">16,836 </td><td></td><td colspan="3"></td><td colspan="2">39,995 </td><td></td><td colspan="3"></td><td colspan="2">31,774 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">18,198 </td><td></td><td colspan="3"></td><td colspan="2">15,152 </td><td></td><td colspan="3"></td><td colspan="2">36,145 </td><td></td><td colspan="3"></td><td colspan="2">28,309 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">2,242 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">3,850 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td></tr><tr><td colspan="3">Total net revenues</td><td colspan="2">12,731 </td><td></td><td colspan="3"></td><td colspan="2">10,895 </td><td></td><td colspan="3"></td><td colspan="2">26,944 </td><td></td><td colspan="3"></td><td colspan="2">23,119 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">615 </td><td></td><td colspan="3"></td><td colspan="2">600 </td><td></td><td colspan="3"></td><td colspan="2">444 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">4,240 </td><td></td><td colspan="3"></td><td colspan="2">3,619 </td><td></td><td colspan="3"></td><td colspan="2">8,825 </td><td></td><td colspan="3"></td><td colspan="2">7,709 </td><td></td></tr><tr><td colspan="3">Transaction based</td><td colspan="2">1,654 </td><td></td><td colspan="3"></td><td colspan="2">1,385 </td><td></td><td colspan="3"></td><td colspan="2">3,151 </td><td></td><td colspan="3"></td><td colspan="2">2,790 </td><td></td></tr><tr><td colspan="3">Market development</td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">146 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Communications and technology</td><td colspan="2">500 </td><td></td><td colspan="3"></td><td colspan="2">482 </td><td></td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">948 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">646 </td><td></td><td colspan="3"></td><td colspan="2">1,594 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">2,564 </td><td></td></tr><tr><td colspan="3">Occupancy</td><td colspan="2">244 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">491 </td><td></td><td colspan="3"></td><td colspan="2">518 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">393 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td><td colspan="3"></td><td colspan="2">777 </td><td></td><td colspan="3"></td><td colspan="2">775 </td><td></td></tr><tr><td colspan="3">Other expenses</td><td colspan="2">703 </td><td></td><td colspan="3"></td><td colspan="2">673 </td><td></td><td colspan="3"></td><td colspan="2">1,398 </td><td></td><td colspan="3"></td><td colspan="2">1,324 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,533 </td><td></td><td colspan="3"></td><td colspan="2">8,544 </td><td></td><td colspan="3"></td><td colspan="2">17,191 </td><td></td><td colspan="3"></td><td colspan="2">16,946 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Pre-tax earnings</td><td colspan="2">3,916 </td><td></td><td colspan="3"></td><td colspan="2">1,736 </td><td></td><td colspan="3"></td><td colspan="2">9,153 </td><td></td><td colspan="3"></td><td colspan="2">5,729 </td><td></td></tr><tr><td colspan="3">Provision for taxes</td><td colspan="2">873 </td><td></td><td colspan="3"></td><td colspan="2">520 </td><td></td><td colspan="3"></td><td colspan="2">1,978 </td><td></td><td colspan="3"></td><td colspan="2">1,279 </td><td></td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">3,043 </td><td></td><td colspan="3"></td><td colspan="2">1,216 </td><td></td><td colspan="3"></td><td colspan="2">7,175 </td><td></td><td colspan="3"></td><td colspan="2">4,450 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">152 </td><td></td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">353 </td><td></td><td colspan="3"></td><td colspan="2">292 </td><td></td></tr><tr><td colspan="3">Net earnings applicable to common shareholders</td><td>$</td><td>2,891 </td><td></td><td colspan="3"></td><td>$</td><td>1,071 </td><td></td><td colspan="3"></td><td>$</td><td>6,822 </td><td></td><td colspan="3"></td><td>$</td><td>4,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>8.73 </td><td></td><td colspan="3"></td><td>$</td><td>3.09 </td><td></td><td colspan="3"></td><td>$</td><td>20.44 </td><td></td><td colspan="3"></td><td>$</td><td>12.00 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>8.62 </td><td></td><td colspan="3"></td><td>$</td><td>3.08 </td><td></td><td colspan="3"></td><td>$</td><td>20.21 </td><td></td><td colspan="3"></td><td>$</td><td>11.91 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">329.8</td><td colspan="3"></td><td colspan="3">342.3</td><td colspan="3"></td><td colspan="3">332.6</td><td colspan="3"></td><td colspan="3">344.4</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">335.5</td><td colspan="3"></td><td colspan="3">347.2</td><td colspan="3"></td><td colspan="3">337.5</td><td colspan="3"></td><td colspan="3">349.2</td></tr></table> Consolidated Statements of Comprehensive Income (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net earnings</td><td>$</td><td>3,043 </td><td></td><td colspan="3"></td><td>$</td><td>1,216 </td><td></td><td colspan="3"></td><td>$</td><td>7,175 </td><td></td><td colspan="3"></td><td>$</td><td>4,450 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss) adjustments, net of tax:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Currency translation</td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Debt valuation adjustment</td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">(610)</td><td></td><td colspan="3"></td><td colspan="2">(288)</td><td></td><td colspan="3"></td><td colspan="2">(611)</td><td></td></tr><tr><td colspan="3">Pension and postretirement liabilities</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">24 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities</td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">403 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">417 </td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">(227)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,460 </td><td></td><td colspan="3"></td><td>$</td><td>580 </td><td></td><td colspan="3"></td><td>$</td><td>7,193 </td><td></td><td colspan="3"></td><td>$</td><td>4,223 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">1</td><td colspan="3"></td><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 49: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">Item 1. Financial Statements</td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Income Statement (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Quarter ended</td><td colspan="3"></td><td colspan="6">Year-to-date</td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">March 31, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td></tr><tr><td colspan="3">(in millions)</td><td colspan="3"></td></tr><tr><td colspan="3">Fee and other revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment services fees</td><td>$</td><td>2,359 </td><td></td><td>$</td><td>2,278 </td><td></td><td>$</td><td>2,252 </td><td></td><td colspan="3"></td><td>$</td><td>4,637 </td><td></td><td>$</td><td>4,371 </td><td></td></tr><tr><td colspan="3">Investment management and performance fees</td><td colspan="2">761 </td><td></td><td colspan="2">776 </td><td></td><td colspan="2">762 </td><td></td><td colspan="3"></td><td colspan="2">1,537 </td><td></td><td colspan="2">1,538 </td><td></td></tr><tr><td colspan="3">Foreign exchange revenue</td><td colspan="2">184 </td><td></td><td colspan="2">152 </td><td></td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="2">334 </td><td></td></tr><tr><td colspan="3">Financing-related fees</td><td colspan="2">53 </td><td></td><td colspan="2">57 </td><td></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td><td colspan="2">102 </td><td></td></tr><tr><td colspan="3">Distribution and servicing fees</td><td colspan="2">41 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="2">68 </td><td></td></tr><tr><td colspan="3">Total fee revenue</td><td colspan="2">3,398 </td><td></td><td colspan="2">3,305 </td><td></td><td colspan="2">3,257 </td><td></td><td colspan="3"></td><td colspan="2">6,703 </td><td></td><td colspan="2">6,413 </td><td></td></tr><tr><td colspan="3">Investment and other revenue (a)</td><td colspan="2">169 </td><td></td><td colspan="2">182 </td><td></td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">351 </td><td></td><td colspan="2">278 </td><td></td></tr><tr><td colspan="3">Total fee and other revenue (a)</td><td colspan="2">3,567 </td><td></td><td colspan="2">3,487 </td><td></td><td colspan="2">3,404 </td><td></td><td colspan="3"></td><td colspan="2">7,054 </td><td></td><td colspan="2">6,691 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">6,392 </td><td></td><td colspan="2">6,096 </td><td></td><td colspan="2">5,224 </td><td></td><td colspan="3"></td><td colspan="2">12,488 </td><td></td><td colspan="2">9,166 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">5,362 </td><td></td><td colspan="2">5,056 </td><td></td><td colspan="2">4,124 </td><td></td><td colspan="3"></td><td colspan="2">10,418 </td><td></td><td colspan="2">6,938 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">1,030 </td><td></td><td colspan="2">1,040 </td><td></td><td colspan="2">1,100 </td><td></td><td colspan="3"></td><td colspan="2">2,070 </td><td></td><td colspan="2">2,228 </td><td></td></tr><tr><td colspan="3">Total revenue (a)</td><td colspan="2">4,597 </td><td></td><td colspan="2">4,527 </td><td></td><td colspan="2">4,504 </td><td></td><td colspan="3"></td><td colspan="2">9,124 </td><td></td><td colspan="2">8,919 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">- </td><td></td><td colspan="2">27 </td><td></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Staff</td><td colspan="2">1,720 </td><td></td><td colspan="2">1,857 </td><td></td><td colspan="2">1,718 </td><td></td><td colspan="3"></td><td colspan="2">3,577 </td><td></td><td colspan="2">3,509 </td><td></td></tr><tr><td colspan="3">Software and equipment</td><td colspan="2">476 </td><td></td><td colspan="2">475 </td><td></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="2">879 </td><td></td></tr><tr><td colspan="3">Professional, legal and other purchased services</td><td colspan="2">374 </td><td></td><td colspan="2">349 </td><td></td><td colspan="2">378 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="2">753 </td><td></td></tr><tr><td colspan="3">Net occupancy</td><td colspan="2">134 </td><td></td><td colspan="2">124 </td><td></td><td colspan="2">121 </td><td></td><td colspan="3"></td><td colspan="2">258 </td><td></td><td colspan="2">240 </td><td></td></tr><tr><td colspan="3">Sub-custodian and clearing</td><td colspan="2">134 </td><td></td><td colspan="2">119 </td><td></td><td colspan="2">119 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="2">237 </td><td></td></tr><tr><td colspan="3">Distribution and servicing</td><td colspan="2">88 </td><td></td><td colspan="2">96 </td><td></td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td><td colspan="2">178 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="2">50 </td><td></td><td colspan="2">36 </td><td></td><td colspan="2">47 </td><td></td><td colspan="3"></td><td colspan="2">86 </td><td></td><td colspan="2">86 </td><td></td></tr><tr><td colspan="3">Bank assessment charges</td><td colspan="2">(7)</td><td></td><td colspan="2">17 </td><td></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="2">81 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Amortization of intangible assets</td><td colspan="2">13 </td><td></td><td colspan="2">12 </td><td></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">88 </td><td></td><td colspan="2">91 </td><td></td><td colspan="2">130 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="2">220 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">3,070 </td><td></td><td colspan="2">3,176 </td><td></td><td colspan="2">3,111 </td><td></td><td colspan="3"></td><td colspan="2">6,246 </td><td></td><td colspan="2">6,211 </td><td></td></tr><tr><td colspan="3">Income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes (a)</td><td colspan="2">1,527 </td><td></td><td colspan="2">1,324 </td><td></td><td colspan="2">1,388 </td><td></td><td colspan="3"></td><td colspan="2">2,851 </td><td></td><td colspan="2">2,676 </td><td></td></tr><tr><td colspan="3">Provision for income taxes (a)</td><td colspan="2">357 </td><td></td><td colspan="2">297 </td><td></td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">654 </td><td></td><td colspan="2">621 </td><td></td></tr><tr><td colspan="3">Net income (a)</td><td colspan="2">1,170 </td><td></td><td colspan="2">1,027 </td><td></td><td colspan="2">1,073 </td><td></td><td colspan="3"></td><td colspan="2">2,197 </td><td></td><td colspan="2">2,055 </td><td></td></tr><tr><td colspan="3">Net (income) attributable to noncontrolling interests related to consolidated investment management funds</td><td colspan="2">(2)</td><td></td><td colspan="2">(2)</td><td></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="2">(1)</td><td></td></tr><tr><td colspan="3">Net income applicable to shareholders of The Bank of New York Mellon Corporation (a)</td><td colspan="2">1,168 </td><td></td><td colspan="2">1,025 </td><td></td><td colspan="2">1,072 </td><td></td><td colspan="3"></td><td colspan="2">2,193 </td><td></td><td colspan="2">2,054 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">(25)</td><td></td><td colspan="2">(72)</td><td></td><td colspan="2">(36)</td><td></td><td colspan="3"></td><td colspan="2">(97)</td><td></td><td colspan="2">(107)</td><td></td></tr><tr><td colspan="3">Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a)</td><td>$</td><td>1,143 </td><td></td><td>$</td><td>953 </td><td></td><td>$</td><td>1,036 </td><td></td><td colspan="3"></td><td>$</td><td>2,096 </td><td></td><td>$</td><td>1,947 </td><td></td></tr></table>(a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking</td><td>$</td><td>1,733 </td><td></td><td colspan="3"></td><td>$</td><td>1,432 </td><td></td><td colspan="3"></td><td>$</td><td>3,818 </td><td></td><td colspan="3"></td><td>$</td><td>3,010 </td><td></td></tr><tr><td colspan="3">Investment management</td><td colspan="2">2,533 </td><td></td><td colspan="3"></td><td colspan="2">2,356 </td><td></td><td colspan="3"></td><td colspan="2">5,024 </td><td></td><td colspan="3"></td><td colspan="2">4,645 </td><td></td></tr><tr><td colspan="3">Commissions and fees</td><td colspan="2">1,051 </td><td></td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">2,128 </td><td></td><td colspan="3"></td><td colspan="2">1,981 </td><td></td></tr><tr><td colspan="3">Market making</td><td colspan="2">4,225 </td><td></td><td colspan="3"></td><td colspan="2">4,351 </td><td></td><td colspan="3"></td><td colspan="2">10,217 </td><td></td><td colspan="3"></td><td colspan="2">9,784 </td><td></td></tr><tr><td colspan="3">Other principal transactions</td><td colspan="2">947 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">1,907 </td><td></td><td colspan="3"></td><td colspan="2">234 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="2">10,489 </td><td></td><td colspan="3"></td><td colspan="2">9,211 </td><td></td><td colspan="3"></td><td colspan="2">23,094 </td><td></td><td colspan="3"></td><td colspan="2">19,654 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">20,440 </td><td></td><td colspan="3"></td><td colspan="2">16,836 </td><td></td><td colspan="3"></td><td colspan="2">39,995 </td><td></td><td colspan="3"></td><td colspan="2">31,774 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">18,198 </td><td></td><td colspan="3"></td><td colspan="2">15,152 </td><td></td><td colspan="3"></td><td colspan="2">36,145 </td><td></td><td colspan="3"></td><td colspan="2">28,309 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">2,242 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">3,850 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td></tr><tr><td colspan="3">Total net revenues</td><td colspan="2">12,731 </td><td></td><td colspan="3"></td><td colspan="2">10,895 </td><td></td><td colspan="3"></td><td colspan="2">26,944 </td><td></td><td colspan="3"></td><td colspan="2">23,119 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">615 </td><td></td><td colspan="3"></td><td colspan="2">600 </td><td></td><td colspan="3"></td><td colspan="2">444 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">4,240 </td><td></td><td colspan="3"></td><td colspan="2">3,619 </td><td></td><td colspan="3"></td><td colspan="2">8,825 </td><td></td><td colspan="3"></td><td colspan="2">7,709 </td><td></td></tr><tr><td colspan="3">Transaction based</td><td colspan="2">1,654 </td><td></td><td colspan="3"></td><td colspan="2">1,385 </td><td></td><td colspan="3"></td><td colspan="2">3,151 </td><td></td><td colspan="3"></td><td colspan="2">2,790 </td><td></td></tr><tr><td colspan="3">Market development</td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">146 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Communications and technology</td><td colspan="2">500 </td><td></td><td colspan="3"></td><td colspan="2">482 </td><td></td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">948 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">646 </td><td></td><td colspan="3"></td><td colspan="2">1,594 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">2,564 </td><td></td></tr><tr><td colspan="3">Occupancy</td><td colspan="2">244 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">491 </td><td></td><td colspan="3"></td><td colspan="2">518 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">393 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td><td colspan="3"></td><td colspan="2">777 </td><td></td><td colspan="3"></td><td colspan="2">775 </td><td></td></tr><tr><td colspan="3">Other expenses</td><td colspan="2">703 </td><td></td><td colspan="3"></td><td colspan="2">673 </td><td></td><td colspan="3"></td><td colspan="2">1,398 </td><td></td><td colspan="3"></td><td colspan="2">1,324 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,533 </td><td></td><td colspan="3"></td><td colspan="2">8,544 </td><td></td><td colspan="3"></td><td colspan="2">17,191 </td><td></td><td colspan="3"></td><td colspan="2">16,946 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Pre-tax earnings</td><td colspan="2">3,916 </td><td></td><td colspan="3"></td><td colspan="2">1,736 </td><td></td><td colspan="3"></td><td colspan="2">9,153 </td><td></td><td colspan="3"></td><td colspan="2">5,729 </td><td></td></tr><tr><td colspan="3">Provision for taxes</td><td colspan="2">873 </td><td></td><td colspan="3"></td><td colspan="2">520 </td><td></td><td colspan="3"></td><td colspan="2">1,978 </td><td></td><td colspan="3"></td><td colspan="2">1,279 </td><td></td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">3,043 </td><td></td><td colspan="3"></td><td colspan="2">1,216 </td><td></td><td colspan="3"></td><td colspan="2">7,175 </td><td></td><td colspan="3"></td><td colspan="2">4,450 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">152 </td><td></td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">353 </td><td></td><td colspan="3"></td><td colspan="2">292 </td><td></td></tr><tr><td colspan="3">Net earnings applicable to common shareholders</td><td>$</td><td>2,891 </td><td></td><td colspan="3"></td><td>$</td><td>1,071 </td><td></td><td colspan="3"></td><td>$</td><td>6,822 </td><td></td><td colspan="3"></td><td>$</td><td>4,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>8.73 </td><td></td><td colspan="3"></td><td>$</td><td>3.09 </td><td></td><td colspan="3"></td><td>$</td><td>20.44 </td><td></td><td colspan="3"></td><td>$</td><td>12.00 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>8.62 </td><td></td><td colspan="3"></td><td>$</td><td>3.08 </td><td></td><td colspan="3"></td><td>$</td><td>20.21 </td><td></td><td colspan="3"></td><td>$</td><td>11.91 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">329.8</td><td colspan="3"></td><td colspan="3">342.3</td><td colspan="3"></td><td colspan="3">332.6</td><td colspan="3"></td><td colspan="3">344.4</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">335.5</td><td colspan="3"></td><td colspan="3">347.2</td><td colspan="3"></td><td colspan="3">337.5</td><td colspan="3"></td><td colspan="3">349.2</td></tr></table> Consolidated Statements of Comprehensive Income (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net earnings</td><td>$</td><td>3,043 </td><td></td><td colspan="3"></td><td>$</td><td>1,216 </td><td></td><td colspan="3"></td><td>$</td><td>7,175 </td><td></td><td colspan="3"></td><td>$</td><td>4,450 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss) adjustments, net of tax:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Currency translation</td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Debt valuation adjustment</td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">(610)</td><td></td><td colspan="3"></td><td colspan="2">(288)</td><td></td><td colspan="3"></td><td colspan="2">(611)</td><td></td></tr><tr><td colspan="3">Pension and postretirement liabilities</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">24 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities</td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">403 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">417 </td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">(227)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,460 </td><td></td><td colspan="3"></td><td>$</td><td>580 </td><td></td><td colspan="3"></td><td>$</td><td>7,193 </td><td></td><td colspan="3"></td><td>$</td><td>4,223 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">1</td><td colspan="3"></td><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">Item 1. Financial Statements</td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Income Statement (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Quarter ended</td><td colspan="3"></td><td colspan="6">Year-to-date</td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">March 31, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td></tr><tr><td colspan="3">(in millions)</td><td colspan="3"></td></tr><tr><td colspan="3">Fee and other revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment services fees</td><td>$</td><td>2,359 </td><td></td><td>$</td><td>2,278 </td><td></td><td>$</td><td>2,252 </td><td></td><td colspan="3"></td><td>$</td><td>4,637 </td><td></td><td>$</td><td>4,371 </td><td></td></tr><tr><td colspan="3">Investment management and performance fees</td><td colspan="2">761 </td><td></td><td colspan="2">776 </td><td></td><td colspan="2">762 </td><td></td><td colspan="3"></td><td colspan="2">1,537 </td><td></td><td colspan="2">1,538 </td><td></td></tr><tr><td colspan="3">Foreign exchange revenue</td><td colspan="2">184 </td><td></td><td colspan="2">152 </td><td></td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="2">334 </td><td></td></tr><tr><td colspan="3">Financing-related fees</td><td colspan="2">53 </td><td></td><td colspan="2">57 </td><td></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td><td colspan="2">102 </td><td></td></tr><tr><td colspan="3">Distribution and servicing fees</td><td colspan="2">41 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="2">68 </td><td></td></tr><tr><td colspan="3">Total fee revenue</td><td colspan="2">3,398 </td><td></td><td colspan="2">3,305 </td><td></td><td colspan="2">3,257 </td><td></td><td colspan="3"></td><td colspan="2">6,703 </td><td></td><td colspan="2">6,413 </td><td></td></tr><tr><td colspan="3">Investment and other revenue (a)</td><td colspan="2">169 </td><td></td><td colspan="2">182 </td><td></td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">351 </td><td></td><td colspan="2">278 </td><td></td></tr><tr><td colspan="3">Total fee and other revenue (a)</td><td colspan="2">3,567 </td><td></td><td colspan="2">3,487 </td><td></td><td colspan="2">3,404 </td><td></td><td colspan="3"></td><td colspan="2">7,054 </td><td></td><td colspan="2">6,691 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">6,392 </td><td></td><td colspan="2">6,096 </td><td></td><td colspan="2">5,224 </td><td></td><td colspan="3"></td><td colspan="2">12,488 </td><td></td><td colspan="2">9,166 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">5,362 </td><td></td><td colspan="2">5,056 </td><td></td><td colspan="2">4,124 </td><td></td><td colspan="3"></td><td colspan="2">10,418 </td><td></td><td colspan="2">6,938 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">1,030 </td><td></td><td colspan="2">1,040 </td><td></td><td colspan="2">1,100 </td><td></td><td colspan="3"></td><td colspan="2">2,070 </td><td></td><td colspan="2">2,228 </td><td></td></tr><tr><td colspan="3">Total revenue (a)</td><td colspan="2">4,597 </td><td></td><td colspan="2">4,527 </td><td></td><td colspan="2">4,504 </td><td></td><td colspan="3"></td><td colspan="2">9,124 </td><td></td><td colspan="2">8,919 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">- </td><td></td><td colspan="2">27 </td><td></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Staff</td><td colspan="2">1,720 </td><td></td><td colspan="2">1,857 </td><td></td><td colspan="2">1,718 </td><td></td><td colspan="3"></td><td colspan="2">3,577 </td><td></td><td colspan="2">3,509 </td><td></td></tr><tr><td colspan="3">Software and equipment</td><td colspan="2">476 </td><td></td><td colspan="2">475 </td><td></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="2">879 </td><td></td></tr><tr><td colspan="3">Professional, legal and other purchased services</td><td colspan="2">374 </td><td></td><td colspan="2">349 </td><td></td><td colspan="2">378 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="2">753 </td><td></td></tr><tr><td colspan="3">Net occupancy</td><td colspan="2">134 </td><td></td><td colspan="2">124 </td><td></td><td colspan="2">121 </td><td></td><td colspan="3"></td><td colspan="2">258 </td><td></td><td colspan="2">240 </td><td></td></tr><tr><td colspan="3">Sub-custodian and clearing</td><td colspan="2">134 </td><td></td><td colspan="2">119 </td><td></td><td colspan="2">119 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="2">237 </td><td></td></tr><tr><td colspan="3">Distribution and servicing</td><td colspan="2">88 </td><td></td><td colspan="2">96 </td><td></td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td><td colspan="2">178 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="2">50 </td><td></td><td colspan="2">36 </td><td></td><td colspan="2">47 </td><td></td><td colspan="3"></td><td colspan="2">86 </td><td></td><td colspan="2">86 </td><td></td></tr><tr><td colspan="3">Bank assessment charges</td><td colspan="2">(7)</td><td></td><td colspan="2">17 </td><td></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="2">81 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Amortization of intangible assets</td><td colspan="2">13 </td><td></td><td colspan="2">12 </td><td></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">88 </td><td></td><td colspan="2">91 </td><td></td><td colspan="2">130 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="2">220 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">3,070 </td><td></td><td colspan="2">3,176 </td><td></td><td colspan="2">3,111 </td><td></td><td colspan="3"></td><td colspan="2">6,246 </td><td></td><td colspan="2">6,211 </td><td></td></tr><tr><td colspan="3">Income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes (a)</td><td colspan="2">1,527 </td><td></td><td colspan="2">1,324 </td><td></td><td colspan="2">1,388 </td><td></td><td colspan="3"></td><td colspan="2">2,851 </td><td></td><td colspan="2">2,676 </td><td></td></tr><tr><td colspan="3">Provision for income taxes (a)</td><td colspan="2">357 </td><td></td><td colspan="2">297 </td><td></td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">654 </td><td></td><td colspan="2">621 </td><td></td></tr><tr><td colspan="3">Net income (a)</td><td colspan="2">1,170 </td><td></td><td colspan="2">1,027 </td><td></td><td colspan="2">1,073 </td><td></td><td colspan="3"></td><td colspan="2">2,197 </td><td></td><td colspan="2">2,055 </td><td></td></tr><tr><td colspan="3">Net (income) attributable to noncontrolling interests related to consolidated investment management funds</td><td colspan="2">(2)</td><td></td><td colspan="2">(2)</td><td></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="2">(1)</td><td></td></tr><tr><td colspan="3">Net income applicable to shareholders of The Bank of New York Mellon Corporation (a)</td><td colspan="2">1,168 </td><td></td><td colspan="2">1,025 </td><td></td><td colspan="2">1,072 </td><td></td><td colspan="3"></td><td colspan="2">2,193 </td><td></td><td colspan="2">2,054 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">(25)</td><td></td><td colspan="2">(72)</td><td></td><td colspan="2">(36)</td><td></td><td colspan="3"></td><td colspan="2">(97)</td><td></td><td colspan="2">(107)</td><td></td></tr><tr><td colspan="3">Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a)</td><td>$</td><td>1,143 </td><td></td><td>$</td><td>953 </td><td></td><td>$</td><td>1,036 </td><td></td><td colspan="3"></td><td>$</td><td>2,096 </td><td></td><td>$</td><td>1,947 </td><td></td></tr></table>(a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
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How much have total assets changed for Goldman Sachs and Bank of New York Mellon as of June 30, 2024, compared to December 31, 2023?
The percentage change in total assets for Goldman Sachs as of June 2024 compared to December 2023 is calculated as follows: Total Assets June 2024: $1,653,313 million Total Assets December 2023: $1,641,594 million Percentage Change = ((1,653,313 - 1,641,594) / 1,641,594) * 100 = 0.71% The percentage change in total assets for Bank of New York Mellon as of June 2024 compared to December 2023 is calculated as follows: Total Assets June 2024: $428,539 million Total Assets December 2023: $409,877 million Percentage Change = ((428,539 - 409,877) / 409,877) * 100 = 4.55%
Comparison
2;52
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
q_com125
By what percentage did total liabilities change for Goldman Sachs and Bank of New York Mellon as of June 30, 2024, compared to December 31, 2023?
The percentage change in total liabilities for Goldman Sachs as of June 2024 compared to December 2023 is calculated as follows: Total Liabilities June 2024: $1,533,850 million Total Liabilities December 2023: $1,524,689 million Percentage Change = ((1,533,850 - 1,524,689) / 1,524,689) * 100 = 0.60% The percentage change in total liabilities for Bank of New York Mellon as of June 2024 compared to December 2023 is calculated as follows: Total Liabilities June 2024: $387,418 million Total Liabilities December 2023: $368,972 million Percentage Change = ((387,418 - 368,972) / 368,972) * 100 = 5.00%
Comparison
2;52
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
q_com126
How much has shareholders' equity shifted for Goldman Sachs and Bank of New York Mellon as of June 30, 2024, compared to December 31, 2023?
The percentage change in shareholders' equity for Goldman Sachs as of June 2024 compared to December 2023 is calculated as follows: Shareholders' Equity June 2024: $119,463 million Shareholders' Equity December 2023: $116,905 million Percentage Change = ((119,463 - 116,905) / 116,905) * 100 = 2.19% (or $2,558 million increase) The percentage change in shareholders' equity for Bank of New York Mellon as of June 2024 compared to December 2023 is calculated as follows: Shareholders' Equity June 2024: $40,843 million Shareholders' Equity December 2023: $40,770 million Percentage Change = ((40,843 - 40,770) / 40,770) * 100 = 0.18% (or $209 million increase)
Comparison
2;52
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
q_com127
How much has the cash and cash equivalents balance for Goldman Sachs and Bank of New York Mellon changed as of June 30, 2024, compared to December 31, 2023?
The percentage change in cash and cash equivalents for Goldman Sachs as of June 2024 compared to December 2023 is calculated as follows: Cash and Cash Equivalents June 2024: $206,326 million Cash and Cash Equivalents December 2023: $241,577 million Percentage Change = ((206,326 - 241,577) / 241,577) * 100 = -14.60% The percentage change in cash and cash equivalents for Bank of New York Mellon as of June 2024 compared to December 2023 is calculated as follows: Cash and Cash Equivalents June 2024: $5,311 million Cash and Cash Equivalents December 2023: $4,922 million Percentage Change = ((5,311 - 4,922) / 4,922) * 100 = 7.90%
Comparison
2;52
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) | | | | | | | | |---:|:------------------------------------------------------------------------------------------------------------|:----------|:----------|:----------|:---|:----------| | 1 | | As of | | | | | | 2 | | June | December | | | | | 3 | $ in millions | 2024 | 2023 | | | | | 4 | Assets | | | | | | | 5 | Cash and cash equivalents | $ | 206,326 | | $ | 241,577 | | 6 | Collateralized agreements: | | | | | | | 7 | Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value) | 198,626 | | 223,805 | | | | 8 | Securities borrowed (includes $45,819 and $44,930 at fair value) | 204,621 | | 199,420 | | | | 9 | Customer and other receivables (includes $23 and $23 at fair value) | 142,000 | | 132,495 | | | | 10 | Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral) | 521,981 | | 477,510 | | | | 11 | Investments (includes $86,855 and $75,767 at fair value) | 160,924 | | 146,839 | | | | 12 | Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value) | 184,127 | | 183,358 | | | | 13 | Other assets (includes $243 and $366 at fair value) | 34,708 | | 36,590 | | | | 14 | Total assets | $ | 1,653,313 | | $ | 1,641,594 | | 16 | Liabilities and shareholders' equity | | | | | | | 17 | Deposits (includes $32,042 and $29,460 at fair value) | $ | 433,105 | | $ | 428,417 | | 18 | Collateralized financings: | | | | | | | 19 | Securities sold under agreements to repurchase (at fair value) | 238,139 | | 249,887 | | | | 20 | Securities loaned (includes $10,775 and $8,934 at fair value) | 63,935 | | 60,483 | | | | 21 | Other secured financings (includes $22,868 and $12,554 at fair value) | 23,123 | | 13,194 | | | | 22 | Customer and other payables | 242,986 | | 230,728 | | | | 23 | Trading liabilities (at fair value) | 199,660 | | 200,355 | | | | 24 | Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value) | 76,769 | | 75,945 | | | | 25 | Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value) | 234,632 | | 241,877 | | | | 26 | Other liabilities (includes $142 and $266 at fair value) | 21,501 | | 23,803 | | | | 27 | Total liabilities | 1,533,850 | | 1,524,689 | | | | 28 | Commitments, contingencies and guarantees | | | | | | | 29 | Shareholders' equity | | | | | | | 30 | Preferred stock; aggregate liquidation preference of $12,753 and $11,203 | 12,753 | | 11,203 | | | | 31 | Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding | 9 | | 9 | | | | 32 | Share-based awards | 5,058 | | 5,121 | | | | 33 | Nonvoting common stock; no shares issued and outstanding | – | | – | | | | 34 | Additional paid-in capital | 61,350 | | 60,247 | | | | 35 | Retained earnings | 148,652 | | 143,688 | | | | 36 | Accumulated other comprehensive loss | (2,900) | | (2,918) | | | | 37 | Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares | (105,459) | | (100,445) | | | | 38 | Total shareholders' equity | 119,463 | | 116,905 | | | | 39 | Total liabilities and shareholders' equity | $ | 1,653,313 | | $ | 1,641,594 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|:----------------------------------|---:| | 1 | Goldman Sachs June 2024 Form 10-Q | 2 | , | | | |---:|:---------------------------------------------------------------| | 1 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Balance Sheet (unaudited) | | | | | | | | |---:|:---------------------------------------------------------------------------------------------------------------------------------------------------|:--------------|:--------------|:---------|:---|:--------| | 1 | | June 30, 2024 | Dec. 31, 2023 | | | | | 2 | (dollars in millions, except per share amounts) | | | | | | | 3 | Assets | | | | | | | 4 | Cash and due from banks, net of allowance for credit losses of $27 and $18 | $ | 5,311 | | $ | 4,922 | | 5 | Interest-bearing deposits with the Federal Reserve and other central banks | 116,139 | | 111,550 | | | | 6 | Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420) | 11,488 | | 12,139 | | | | 7 | Federal funds sold and securities purchased under resale agreements | 29,723 | | 28,900 | | | | 8 | Securities: | | | | | | | 9 | Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711) | 46,429 | | 49,578 | | | | 10 | Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1) | 90,421 | | 76,817 | | | | 11 | Total securities | 136,850 | | 126,395 | | | | 12 | Trading assets | 9,609 | | 10,058 | | | | 13 | Loans | 70,642 | | 66,879 | | | | 14 | Allowance for credit losses | (286) | | (303) | | | | 15 | Net loans | 70,356 | | 66,576 | | | | 16 | Premises and equipment | 3,267 | | 3,163 | | | | 17 | Accrued interest receivable | 1,253 | | 1,150 | | | | 18 | Goodwill | 16,217 | | 16,261 | | | | 19 | Intangible assets | 2,826 | | 2,854 | | | | 20 | Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value) | 25,500 | | 25,909 | | | | 21 | Total assets | $ | 428,539 | | $ | 409,877 | | 22 | Liabilities | | | | | | | 23 | Deposits: | | | | | | | 24 | Noninterest-bearing deposits (principally U.S. offices) | $ | 58,029 | | $ | 58,274 | | 25 | Interest-bearing deposits in U.S. offices | 149,115 | | 132,616 | | | | 26 | Interest-bearing deposits in non-U.S. offices | 97,167 | | 92,779 | | | | 27 | Total deposits | 304,311 | | 283,669 | | | | 28 | Federal funds purchased and securities sold under repurchase agreements | 15,701 | | 14,507 | | | | 29 | Trading liabilities | 3,372 | | 6,226 | | | | 30 | Payables to customers and broker-dealers | 17,569 | | 18,395 | | | | 31 | Commercial paper | 301 | | - | | | | 32 | Other borrowed funds | 280 | | 479 | | | | 33 | Accrued taxes and other expenses | 4,729 | | 5,411 | | | | 34 | Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value) | 10,208 | | 9,028 | | | | 35 | Long-term debt | 30,947 | | 31,257 | | | | 36 | Total liabilities | 387,418 | | 368,972 | | | | 37 | Temporary equity | | | | | | | 38 | Redeemable noncontrolling interests | 92 | | 85 | | | | 39 | Permanent equity | | | | | | | 40 | Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares | 4,343 | | 4,343 | | | | 41 | Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares | 14 | | 14 | | | | 42 | Additional paid-in capital | 29,139 | | 28,908 | | | | 43 | Retained earnings | 40,999 | | 39,549 | | | | 44 | Accumulated other comprehensive loss, net of tax | (4,900) | | (4,893) | | | | 45 | Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost | (28,752) | | (27,151) | | | | 46 | Total The Bank of New York Mellon Corporation shareholders' equity | 40,843 | | 40,770 | | | | 47 | Nonredeemable noncontrolling interests of consolidated investment management funds | 186 | | 50 | | | | 48 | Total permanent equity | 41,029 | | 40,820 | | | | 49 | Total liabilities, temporary equity and permanent equity | $ | 428,539 | | $ | 409,877 | See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 2: THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 52: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="6">As of</td></tr><tr><td colspan="3"></td><td colspan="3">June</td><td colspan="3">December</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3">2023</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and cash equivalents</td><td>$</td><td>206,326 </td><td></td><td>$</td><td>241,577 </td><td></td></tr><tr><td colspan="3">Collateralized agreements:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities purchased under agreements to resell (includes $198,360 and $223,543 at fair value)</td><td colspan="2">198,626 </td><td></td><td colspan="2">223,805 </td><td></td></tr><tr><td colspan="3">Securities borrowed (includes $45,819 and $44,930 at fair value)</td><td colspan="2">204,621 </td><td></td><td colspan="2">199,420 </td><td></td></tr><tr><td colspan="3">Customer and other receivables (includes $23 and $23 at fair value)</td><td colspan="2">142,000 </td><td></td><td colspan="2">132,495 </td><td></td></tr><tr><td colspan="3">Trading assets (at fair value and includes $117,586 and $110,567 pledged as collateral)</td><td colspan="2">521,981 </td><td></td><td colspan="2">477,510 </td><td></td></tr><tr><td colspan="3">Investments (includes $86,855 and $75,767 at fair value)</td><td colspan="2">160,924 </td><td></td><td colspan="2">146,839 </td><td></td></tr><tr><td colspan="3">Loans (net of allowance of $4,808 and $5,050, and includes $6,035 and $6,506 at fair value)</td><td colspan="2">184,127 </td><td></td><td colspan="2">183,358 </td><td></td></tr><tr><td colspan="3">Other assets (includes $243 and $366 at fair value)</td><td colspan="2">34,708 </td><td></td><td colspan="2">36,590 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Liabilities and shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits (includes $32,042 and $29,460 at fair value)</td><td>$</td><td>433,105 </td><td></td><td>$</td><td>428,417 </td><td></td></tr><tr><td colspan="3">Collateralized financings:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Securities sold under agreements to repurchase (at fair value)</td><td colspan="2">238,139 </td><td></td><td colspan="2">249,887 </td><td></td></tr><tr><td colspan="3">Securities loaned (includes $10,775 and $8,934 at fair value)</td><td colspan="2">63,935 </td><td></td><td colspan="2">60,483 </td><td></td></tr><tr><td colspan="3">Other secured financings (includes $22,868 and $12,554 at fair value)</td><td colspan="2">23,123 </td><td></td><td colspan="2">13,194 </td><td></td></tr><tr><td colspan="3">Customer and other payables</td><td colspan="2">242,986 </td><td></td><td colspan="2">230,728 </td><td></td></tr><tr><td colspan="3">Trading liabilities (at fair value)</td><td colspan="2">199,660 </td><td></td><td colspan="2">200,355 </td><td></td></tr><tr><td colspan="3">Unsecured short-term borrowings (includes $49,579 and $46,127 at fair value)</td><td colspan="2">76,769 </td><td></td><td colspan="2">75,945 </td><td></td></tr><tr><td colspan="3">Unsecured long-term borrowings (includes $88,361 and $86,410 at fair value)</td><td colspan="2">234,632 </td><td></td><td colspan="2">241,877 </td><td></td></tr><tr><td colspan="3">Other liabilities (includes $142 and $266 at fair value)</td><td colspan="2">21,501 </td><td></td><td colspan="2">23,803 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">1,533,850 </td><td></td><td colspan="2">1,524,689 </td><td></td></tr><tr><td colspan="3">Commitments, contingencies and guarantees</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Shareholders' equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock; aggregate liquidation preference of $12,753 and $11,203</td><td colspan="2">12,753 </td><td></td><td colspan="2">11,203 </td><td></td></tr><tr><td colspan="3">Common stock; 927,414,906 and 922,895,030 shares issued, and 316,162,882 and 323,376,354 shares outstanding</td><td colspan="2">9 </td><td></td><td colspan="2">9 </td><td></td></tr><tr><td colspan="3">Share-based awards</td><td colspan="2">5,058 </td><td></td><td colspan="2">5,121 </td><td></td></tr><tr><td colspan="3">Nonvoting common stock; no shares issued and outstanding</td><td colspan="2">– </td><td></td><td colspan="2">– </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">61,350 </td><td></td><td colspan="2">60,247 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">148,652 </td><td></td><td colspan="2">143,688 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss</td><td colspan="2">(2,900)</td><td></td><td colspan="2">(2,918)</td><td></td></tr><tr><td colspan="3">Stock held in treasury, at cost; 611,252,026 and 599,518,678 shares</td><td colspan="2">(105,459)</td><td></td><td colspan="2">(100,445)</td><td></td></tr><tr><td colspan="3">Total shareholders' equity</td><td colspan="2">119,463 </td><td></td><td colspan="2">116,905 </td><td></td></tr><tr><td colspan="3">Total liabilities and shareholders' equity</td><td>$</td><td>1,653,313 </td><td></td><td>$</td><td>1,641,594 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td><td colspan="3"></td><td colspan="3">2</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Balance Sheet (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">Dec. 31, 2023</td></tr><tr><td colspan="3">(dollars in millions, except per share amounts)</td></tr><tr><td colspan="3">Assets</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Cash and due from banks, net of allowance for credit losses of $27 and $18</td><td>$</td><td>5,311 </td><td></td><td>$</td><td>4,922 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with the Federal Reserve and other central banks</td><td colspan="2">116,139 </td><td></td><td colspan="2">111,550 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits with banks, net of allowance for credit losses of $1 and $2 (includes restricted of $2,026 and $3,420)</td><td colspan="2">11,488 </td><td></td><td colspan="2">12,139 </td><td></td></tr><tr><td colspan="3">Federal funds sold and securities purchased under resale agreements</td><td colspan="2">29,723 </td><td></td><td colspan="2">28,900 </td><td></td></tr><tr><td colspan="3">Securities:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Held-to-maturity, at amortized cost, net of allowance for credit losses of $1 and $1 (fair value of $41,287 and $44,711)</td><td colspan="2">46,429 </td><td></td><td colspan="2">49,578 </td><td></td></tr><tr><td colspan="3">Available-for-sale, at fair value (amortized cost of $94,566 and $80,678, net of allowance for credit losses of $5 and less than $1)</td><td colspan="2">90,421 </td><td></td><td colspan="2">76,817 </td><td></td></tr><tr><td colspan="3">Total securities</td><td colspan="2">136,850 </td><td></td><td colspan="2">126,395 </td><td></td></tr><tr><td colspan="3">Trading assets</td><td colspan="2">9,609 </td><td></td><td colspan="2">10,058 </td><td></td></tr><tr><td colspan="3">Loans</td><td colspan="2">70,642 </td><td></td><td colspan="2">66,879 </td><td></td></tr><tr><td colspan="3">Allowance for credit losses</td><td colspan="2">(286)</td><td></td><td colspan="2">(303)</td><td></td></tr><tr><td colspan="3">Net loans</td><td colspan="2">70,356 </td><td></td><td colspan="2">66,576 </td><td></td></tr><tr><td colspan="3">Premises and equipment</td><td colspan="2">3,267 </td><td></td><td colspan="2">3,163 </td><td></td></tr><tr><td colspan="3">Accrued interest receivable</td><td colspan="2">1,253 </td><td></td><td colspan="2">1,150 </td><td></td></tr><tr><td colspan="3">Goodwill</td><td colspan="2">16,217 </td><td></td><td colspan="2">16,261 </td><td></td></tr><tr><td colspan="3">Intangible assets</td><td colspan="2">2,826 </td><td></td><td colspan="2">2,854 </td><td></td></tr><tr><td colspan="3">Other assets, net of allowance for credit losses on accounts receivable of $3 and $3 (includes $1,577 and $1,261, at fair value)</td><td colspan="2">25,500 </td><td></td><td colspan="2">25,909 </td><td></td></tr><tr><td colspan="3">Total assets</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr><tr><td colspan="3">Liabilities</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Deposits:</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Noninterest-bearing deposits (principally U.S. offices)</td><td>$</td><td>58,029 </td><td></td><td>$</td><td>58,274 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in U.S. offices</td><td colspan="2">149,115 </td><td></td><td colspan="2">132,616 </td><td></td></tr><tr><td colspan="3">Interest-bearing deposits in non-U.S. offices</td><td colspan="2">97,167 </td><td></td><td colspan="2">92,779 </td><td></td></tr><tr><td colspan="3">Total deposits</td><td colspan="2">304,311 </td><td></td><td colspan="2">283,669 </td><td></td></tr><tr><td colspan="3">Federal funds purchased and securities sold under repurchase agreements</td><td colspan="2">15,701 </td><td></td><td colspan="2">14,507 </td><td></td></tr><tr><td colspan="3">Trading liabilities</td><td colspan="2">3,372 </td><td></td><td colspan="2">6,226 </td><td></td></tr><tr><td colspan="3">Payables to customers and broker-dealers</td><td colspan="2">17,569 </td><td></td><td colspan="2">18,395 </td><td></td></tr><tr><td colspan="3">Commercial paper</td><td colspan="2">301 </td><td></td><td colspan="2">- </td><td></td></tr><tr><td colspan="3">Other borrowed funds</td><td colspan="2">280 </td><td></td><td colspan="2">479 </td><td></td></tr><tr><td colspan="3">Accrued taxes and other expenses</td><td colspan="2">4,729 </td><td></td><td colspan="2">5,411 </td><td></td></tr><tr><td colspan="3">Other liabilities (including allowance for credit losses on lending-related commitments of $73 and $87, also includes $63 and $195, at fair value)</td><td colspan="2">10,208 </td><td></td><td colspan="2">9,028 </td><td></td></tr><tr><td colspan="3">Long-term debt</td><td colspan="2">30,947 </td><td></td><td colspan="2">31,257 </td><td></td></tr><tr><td colspan="3">Total liabilities</td><td colspan="2">387,418 </td><td></td><td colspan="2">368,972 </td><td></td></tr><tr><td colspan="3">Temporary equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Redeemable noncontrolling interests</td><td colspan="2">92 </td><td></td><td colspan="2">85 </td><td></td></tr><tr><td colspan="3">Permanent equity</td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Preferred stock – par value $0.01 per share; authorized 100,000,000 shares; issued 43,826 and 43,826 shares</td><td colspan="2">4,343 </td><td></td><td colspan="2">4,343 </td><td></td></tr><tr><td colspan="3">Common stock – par value $0.01 per share; authorized 3,500,000,000 shares; issued 1,409,173,568 and 1,402,429,447 shares</td><td colspan="2">14 </td><td></td><td colspan="2">14 </td><td></td></tr><tr><td colspan="3">Additional paid-in capital</td><td colspan="2">29,139 </td><td></td><td colspan="2">28,908 </td><td></td></tr><tr><td colspan="3">Retained earnings</td><td colspan="2">40,999 </td><td></td><td colspan="2">39,549 </td><td></td></tr><tr><td colspan="3">Accumulated other comprehensive loss, net of tax</td><td colspan="2">(4,900)</td><td></td><td colspan="2">(4,893)</td><td></td></tr><tr><td colspan="3">Less: Treasury stock of 671,216,069 and 643,085,355 common shares, at cost</td><td colspan="2">(28,752)</td><td></td><td colspan="2">(27,151)</td><td></td></tr><tr><td colspan="3">Total The Bank of New York Mellon Corporation shareholders' equity</td><td colspan="2">40,843 </td><td></td><td colspan="2">40,770 </td><td></td></tr><tr><td colspan="3">Nonredeemable noncontrolling interests of consolidated investment management funds</td><td colspan="2">186 </td><td></td><td colspan="2">50 </td><td></td></tr><tr><td colspan="3">Total permanent equity</td><td colspan="2">41,029 </td><td></td><td colspan="2">40,820 </td><td></td></tr><tr><td colspan="3">Total liabilities, temporary equity and permanent equity</td><td>$</td><td>428,539 </td><td></td><td>$</td><td>409,877 </td><td></td></tr></table> See accompanying unaudited Notes to Consolidated Financial Statements. 52 BNY
q_com128
What is the revenue growth rate for Goldman Sachs and Bank of New York Mellon for the six months ended June 30, 2024, compared to the same period in 2023?
The revenue growth rate for Goldman Sachs for the six months ended June 2024 compared to the same period in 2023 is calculated as follows: Revenue 2024: $26,944 million Revenue 2023: $23,119 million Growth Rate = ((26,944 - 23,119) / 23,119) * 100 = 16.56% The revenue growth rate for Bank of New York Mellon for the six months ended June 2024 compared to the same period in 2023 is calculated as follows: Revenue 2024: $9,124 million Revenue 2023: $8,919 million Growth Rate = ((9,124 - 8,919) / 8,919) * 100 = 2.30%
Comparison
1;49
0000886982-24-000022;0001390777-24-000105
Item 1. Financial Statements (Unaudited);Item 1. Financial Statements:
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 1: PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------|:-----------------------|:------|:---------------------|:-------|:------|:------|:-------|:---|:-------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | in millions, except per share amounts | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Revenues | | | | | | | | | | | | | 5 | Investment banking | $ | 1,733 | | | $ | 1,432 | | $ | 3,818 | $ | 3,010 | | 6 | Investment management | 2,533 | | | 2,356 | | | 5,024 | | 4,645 | | | | 7 | Commissions and fees | 1,051 | | | 893 | | | 2,128 | | 1,981 | | | | 8 | Market making | 4,225 | | | 4,351 | | | 10,217 | | 9,784 | | | | 9 | Other principal transactions | 947 | | | 179 | | | 1,907 | | 234 | | | | 10 | Total non-interest revenues | 10,489 | | | 9,211 | | | 23,094 | | 19,654 | | | | 12 | Interest income | 20,440 | | | 16,836 | | | 39,995 | | 31,774 | | | | 13 | Interest expense | 18,198 | | | 15,152 | | | 36,145 | | 28,309 | | | | 14 | Net interest income | 2,242 | | | 1,684 | | | 3,850 | | 3,465 | | | | 15 | Total net revenues | 12,731 | | | 10,895 | | | 26,944 | | 23,119 | | | | 16 | Provision for credit losses | 282 | | | 615 | | | 600 | | 444 | | | | 17 | Operating expenses | | | | | | | | | | | | | 18 | Compensation and benefits | 4,240 | | | 3,619 | | | 8,825 | | 7,709 | | | | 19 | Transaction based | 1,654 | | | 1,385 | | | 3,151 | | 2,790 | | | | 20 | Market development | 153 | | | 146 | | | 306 | | 318 | | | | 21 | Communications and technology | 500 | | | 482 | | | 970 | | 948 | | | | 22 | Depreciation and amortization | 646 | | | 1,594 | | | 1,273 | | 2,564 | | | | 23 | Occupancy | 244 | | | 253 | | | 491 | | 518 | | | | 24 | Professional fees | 393 | | | 392 | | | 777 | | 775 | | | | 25 | Other expenses | 703 | | | 673 | | | 1,398 | | 1,324 | | | | 26 | Total operating expenses | 8,533 | | | 8,544 | | | 17,191 | | 16,946 | | | | 28 | Pre-tax earnings | 3,916 | | | 1,736 | | | 9,153 | | 5,729 | | | | 29 | Provision for taxes | 873 | | | 520 | | | 1,978 | | 1,279 | | | | 30 | Net earnings | 3,043 | | | 1,216 | | | 7,175 | | 4,450 | | | | 31 | Preferred stock dividends | 152 | | | 145 | | | 353 | | 292 | | | | 32 | Net earnings applicable to common shareholders | $ | 2,891 | | | $ | 1,071 | | $ | 6,822 | $ | 4,158 | | 34 | Earnings per common share | | | | | | | | | | | | | 35 | Basic | $ | 8.73 | | | $ | 3.09 | | $ | 20.44 | $ | 12.00 | | 36 | Diluted | $ | 8.62 | | | $ | 3.08 | | $ | 20.21 | $ | 11.91 | | 38 | Average common shares | | | | | | | | | | | | | 39 | Basic | 329.8 | | 342.3 | | 332.6 | | 344.4 | | | | | | 40 | Diluted | 335.5 | | 347.2 | | 337.5 | | 349.2 | | | | | Consolidated Statements of Comprehensive Income (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------|:-----------------------|:------|:---------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | $ in millions | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Net earnings | $ | 3,043 | | | $ | 1,216 | | $ | 7,175 | $ | 4,450 | | 5 | Other comprehensive income/(loss) adjustments, net of tax: | | | | | | | | | | | | | 6 | Currency translation | (4) | | | (12) | | | 22 | | (43) | | | | 7 | Debt valuation adjustment | 268 | | | (610) | | | (288) | | (611) | | | | 8 | Pension and postretirement liabilities | 6 | | | 10 | | | 22 | | 24 | | | | 9 | Available-for-sale securities | 147 | | | (24) | | | 262 | | 403 | | | | 10 | Other comprehensive income/(loss) | 417 | | | (636) | | | 18 | | (227) | | | | 11 | Comprehensive income | $ | 3,460 | | | $ | 580 | | $ | 7,193 | $ | 4,223 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|---:|:----------------------------------| | 1 | 1 | Goldman Sachs June 2024 Form 10-Q | , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 49: | | | |---:|:---------------------------------------------------------------| | 1 | Item 1. Financial Statements | | 2 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Income Statement (unaudited) | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------|:--------------|:---------------|:--------------|:---|:--------------|:--------------|:---|:-------|:------|:---|:------|:---|:------| | 1 | | Quarter ended | | Year-to-date | | | | | | | | | | | | 2 | | June 30, 2024 | March 31, 2024 | June 30, 2023 | | June 30, 2024 | June 30, 2023 | | | | | | | | | 3 | (in millions) | | | | | | | | | | | | | | | 4 | Fee and other revenue | | | | | | | | | | | | | | | 5 | Investment services fees | $ | 2,359 | | $ | 2,278 | | $ | 2,252 | | $ | 4,637 | $ | 4,371 | | 6 | Investment management and performance fees | 761 | | 776 | | 762 | | | 1,537 | 1,538 | | | | | | 7 | Foreign exchange revenue | 184 | | 152 | | 158 | | | 336 | 334 | | | | | | 8 | Financing-related fees | 53 | | 57 | | 50 | | | 110 | 102 | | | | | | 9 | Distribution and servicing fees | 41 | | 42 | | 35 | | | 83 | 68 | | | | | | 10 | Total fee revenue | 3,398 | | 3,305 | | 3,257 | | | 6,703 | 6,413 | | | | | | 11 | Investment and other revenue (a) | 169 | | 182 | | 147 | | | 351 | 278 | | | | | | 12 | Total fee and other revenue (a) | 3,567 | | 3,487 | | 3,404 | | | 7,054 | 6,691 | | | | | | 13 | Net interest income | | | | | | | | | | | | | | | 14 | Interest income | 6,392 | | 6,096 | | 5,224 | | | 12,488 | 9,166 | | | | | | 15 | Interest expense | 5,362 | | 5,056 | | 4,124 | | | 10,418 | 6,938 | | | | | | 16 | Net interest income | 1,030 | | 1,040 | | 1,100 | | | 2,070 | 2,228 | | | | | | 17 | Total revenue (a) | 4,597 | | 4,527 | | 4,504 | | | 9,124 | 8,919 | | | | | | 18 | Provision for credit losses | - | | 27 | | 5 | | | 27 | 32 | | | | | | 19 | Noninterest expense | | | | | | | | | | | | | | | 20 | Staff | 1,720 | | 1,857 | | 1,718 | | | 3,577 | 3,509 | | | | | | 21 | Software and equipment | 476 | | 475 | | 450 | | | 951 | 879 | | | | | | 22 | Professional, legal and other purchased services | 374 | | 349 | | 378 | | | 723 | 753 | | | | | | 23 | Net occupancy | 134 | | 124 | | 121 | | | 258 | 240 | | | | | | 24 | Sub-custodian and clearing | 134 | | 119 | | 119 | | | 253 | 237 | | | | | | 25 | Distribution and servicing | 88 | | 96 | | 93 | | | 184 | 178 | | | | | | 26 | Business development | 50 | | 36 | | 47 | | | 86 | 86 | | | | | | 27 | Bank assessment charges | (7) | | 17 | | 41 | | | 10 | 81 | | | | | | 29 | Amortization of intangible assets | 13 | | 12 | | 14 | | | 25 | 28 | | | | | | 30 | Other | 88 | | 91 | | 130 | | | 179 | 220 | | | | | | 31 | Total noninterest expense | 3,070 | | 3,176 | | 3,111 | | | 6,246 | 6,211 | | | | | | 32 | Income | | | | | | | | | | | | | | | 33 | Income before income taxes (a) | 1,527 | | 1,324 | | 1,388 | | | 2,851 | 2,676 | | | | | | 34 | Provision for income taxes (a) | 357 | | 297 | | 315 | | | 654 | 621 | | | | | | 35 | Net income (a) | 1,170 | | 1,027 | | 1,073 | | | 2,197 | 2,055 | | | | | | 36 | Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (2) | | (2) | | (1) | | | (4) | (1) | | | | | | 37 | Net income applicable to shareholders of The Bank of New York Mellon Corporation (a) | 1,168 | | 1,025 | | 1,072 | | | 2,193 | 2,054 | | | | | | 38 | Preferred stock dividends | (25) | | (72) | | (36) | | | (97) | (107) | | | | | | 39 | Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a) | $ | 1,143 | | $ | 953 | | $ | 1,036 | | $ | 2,096 | $ | 1,947 | (a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------|:-----------------------|:------|:---------------------|:-------|:------|:------|:-------|:---|:-------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | in millions, except per share amounts | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Revenues | | | | | | | | | | | | | 5 | Investment banking | $ | 1,733 | | | $ | 1,432 | | $ | 3,818 | $ | 3,010 | | 6 | Investment management | 2,533 | | | 2,356 | | | 5,024 | | 4,645 | | | | 7 | Commissions and fees | 1,051 | | | 893 | | | 2,128 | | 1,981 | | | | 8 | Market making | 4,225 | | | 4,351 | | | 10,217 | | 9,784 | | | | 9 | Other principal transactions | 947 | | | 179 | | | 1,907 | | 234 | | | | 10 | Total non-interest revenues | 10,489 | | | 9,211 | | | 23,094 | | 19,654 | | | | 12 | Interest income | 20,440 | | | 16,836 | | | 39,995 | | 31,774 | | | | 13 | Interest expense | 18,198 | | | 15,152 | | | 36,145 | | 28,309 | | | | 14 | Net interest income | 2,242 | | | 1,684 | | | 3,850 | | 3,465 | | | | 15 | Total net revenues | 12,731 | | | 10,895 | | | 26,944 | | 23,119 | | | | 16 | Provision for credit losses | 282 | | | 615 | | | 600 | | 444 | | | | 17 | Operating expenses | | | | | | | | | | | | | 18 | Compensation and benefits | 4,240 | | | 3,619 | | | 8,825 | | 7,709 | | | | 19 | Transaction based | 1,654 | | | 1,385 | | | 3,151 | | 2,790 | | | | 20 | Market development | 153 | | | 146 | | | 306 | | 318 | | | | 21 | Communications and technology | 500 | | | 482 | | | 970 | | 948 | | | | 22 | Depreciation and amortization | 646 | | | 1,594 | | | 1,273 | | 2,564 | | | | 23 | Occupancy | 244 | | | 253 | | | 491 | | 518 | | | | 24 | Professional fees | 393 | | | 392 | | | 777 | | 775 | | | | 25 | Other expenses | 703 | | | 673 | | | 1,398 | | 1,324 | | | | 26 | Total operating expenses | 8,533 | | | 8,544 | | | 17,191 | | 16,946 | | | | 28 | Pre-tax earnings | 3,916 | | | 1,736 | | | 9,153 | | 5,729 | | | | 29 | Provision for taxes | 873 | | | 520 | | | 1,978 | | 1,279 | | | | 30 | Net earnings | 3,043 | | | 1,216 | | | 7,175 | | 4,450 | | | | 31 | Preferred stock dividends | 152 | | | 145 | | | 353 | | 292 | | | | 32 | Net earnings applicable to common shareholders | $ | 2,891 | | | $ | 1,071 | | $ | 6,822 | $ | 4,158 | | 34 | Earnings per common share | | | | | | | | | | | | | 35 | Basic | $ | 8.73 | | | $ | 3.09 | | $ | 20.44 | $ | 12.00 | | 36 | Diluted | $ | 8.62 | | | $ | 3.08 | | $ | 20.21 | $ | 11.91 | | 38 | Average common shares | | | | | | | | | | | | | 39 | Basic | 329.8 | | 342.3 | | 332.6 | | 344.4 | | | | | | 40 | Diluted | 335.5 | | 347.2 | | 337.5 | | 349.2 | | | | | Consolidated Statements of Comprehensive Income (Unaudited) | | | | | | | | | | | | | | |---:|:-----------------------------------------------------------|:-----------------------|:------|:---------------------|:------|:-----|:------|:------|:---|:------|:---|:------| | 2 | | Three MonthsEnded June | | Six MonthsEnded June | | | | | | | | | | 3 | $ in millions | 2024 | | 2023 | | 2024 | | 2023 | | | | | | 4 | Net earnings | $ | 3,043 | | | $ | 1,216 | | $ | 7,175 | $ | 4,450 | | 5 | Other comprehensive income/(loss) adjustments, net of tax: | | | | | | | | | | | | | 6 | Currency translation | (4) | | | (12) | | | 22 | | (43) | | | | 7 | Debt valuation adjustment | 268 | | | (610) | | | (288) | | (611) | | | | 8 | Pension and postretirement liabilities | 6 | | | 10 | | | 22 | | 24 | | | | 9 | Available-for-sale securities | 147 | | | (24) | | | 262 | | 403 | | | | 10 | Other comprehensive income/(loss) | 417 | | | (636) | | | 18 | | (227) | | | | 11 | Comprehensive income | $ | 3,460 | | | $ | 580 | | $ | 7,193 | $ | 4,223 | The accompanying notes are an integral part of these consolidated financial statements. | | | | |---:|---:|:----------------------------------| | 1 | 1 | Goldman Sachs June 2024 Form 10-Q | , | | | |---:|:---------------------------------------------------------------| | 1 | Item 1. Financial Statements | | 2 | The Bank of New York Mellon Corporation (and its subsidiaries) | Consolidated Income Statement (unaudited) | | | | | | | | | | | | | | | | |---:|:----------------------------------------------------------------------------------------------------------|:--------------|:---------------|:--------------|:---|:--------------|:--------------|:---|:-------|:------|:---|:------|:---|:------| | 1 | | Quarter ended | | Year-to-date | | | | | | | | | | | | 2 | | June 30, 2024 | March 31, 2024 | June 30, 2023 | | June 30, 2024 | June 30, 2023 | | | | | | | | | 3 | (in millions) | | | | | | | | | | | | | | | 4 | Fee and other revenue | | | | | | | | | | | | | | | 5 | Investment services fees | $ | 2,359 | | $ | 2,278 | | $ | 2,252 | | $ | 4,637 | $ | 4,371 | | 6 | Investment management and performance fees | 761 | | 776 | | 762 | | | 1,537 | 1,538 | | | | | | 7 | Foreign exchange revenue | 184 | | 152 | | 158 | | | 336 | 334 | | | | | | 8 | Financing-related fees | 53 | | 57 | | 50 | | | 110 | 102 | | | | | | 9 | Distribution and servicing fees | 41 | | 42 | | 35 | | | 83 | 68 | | | | | | 10 | Total fee revenue | 3,398 | | 3,305 | | 3,257 | | | 6,703 | 6,413 | | | | | | 11 | Investment and other revenue (a) | 169 | | 182 | | 147 | | | 351 | 278 | | | | | | 12 | Total fee and other revenue (a) | 3,567 | | 3,487 | | 3,404 | | | 7,054 | 6,691 | | | | | | 13 | Net interest income | | | | | | | | | | | | | | | 14 | Interest income | 6,392 | | 6,096 | | 5,224 | | | 12,488 | 9,166 | | | | | | 15 | Interest expense | 5,362 | | 5,056 | | 4,124 | | | 10,418 | 6,938 | | | | | | 16 | Net interest income | 1,030 | | 1,040 | | 1,100 | | | 2,070 | 2,228 | | | | | | 17 | Total revenue (a) | 4,597 | | 4,527 | | 4,504 | | | 9,124 | 8,919 | | | | | | 18 | Provision for credit losses | - | | 27 | | 5 | | | 27 | 32 | | | | | | 19 | Noninterest expense | | | | | | | | | | | | | | | 20 | Staff | 1,720 | | 1,857 | | 1,718 | | | 3,577 | 3,509 | | | | | | 21 | Software and equipment | 476 | | 475 | | 450 | | | 951 | 879 | | | | | | 22 | Professional, legal and other purchased services | 374 | | 349 | | 378 | | | 723 | 753 | | | | | | 23 | Net occupancy | 134 | | 124 | | 121 | | | 258 | 240 | | | | | | 24 | Sub-custodian and clearing | 134 | | 119 | | 119 | | | 253 | 237 | | | | | | 25 | Distribution and servicing | 88 | | 96 | | 93 | | | 184 | 178 | | | | | | 26 | Business development | 50 | | 36 | | 47 | | | 86 | 86 | | | | | | 27 | Bank assessment charges | (7) | | 17 | | 41 | | | 10 | 81 | | | | | | 29 | Amortization of intangible assets | 13 | | 12 | | 14 | | | 25 | 28 | | | | | | 30 | Other | 88 | | 91 | | 130 | | | 179 | 220 | | | | | | 31 | Total noninterest expense | 3,070 | | 3,176 | | 3,111 | | | 6,246 | 6,211 | | | | | | 32 | Income | | | | | | | | | | | | | | | 33 | Income before income taxes (a) | 1,527 | | 1,324 | | 1,388 | | | 2,851 | 2,676 | | | | | | 34 | Provision for income taxes (a) | 357 | | 297 | | 315 | | | 654 | 621 | | | | | | 35 | Net income (a) | 1,170 | | 1,027 | | 1,073 | | | 2,197 | 2,055 | | | | | | 36 | Net (income) attributable to noncontrolling interests related to consolidated investment management funds | (2) | | (2) | | (1) | | | (4) | (1) | | | | | | 37 | Net income applicable to shareholders of The Bank of New York Mellon Corporation (a) | 1,168 | | 1,025 | | 1,072 | | | 2,193 | 2,054 | | | | | | 38 | Preferred stock dividends | (25) | | (72) | | (36) | | | (97) | (107) | | | | | | 39 | Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a) | $ | 1,143 | | $ | 953 | | $ | 1,036 | | $ | 2,096 | $ | 1,947 | (a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
GOLDMAN SACHS GROUP INC 10-Q form for quarterly period ended 2024-06-30, page 1: PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking</td><td>$</td><td>1,733 </td><td></td><td colspan="3"></td><td>$</td><td>1,432 </td><td></td><td colspan="3"></td><td>$</td><td>3,818 </td><td></td><td colspan="3"></td><td>$</td><td>3,010 </td><td></td></tr><tr><td colspan="3">Investment management</td><td colspan="2">2,533 </td><td></td><td colspan="3"></td><td colspan="2">2,356 </td><td></td><td colspan="3"></td><td colspan="2">5,024 </td><td></td><td colspan="3"></td><td colspan="2">4,645 </td><td></td></tr><tr><td colspan="3">Commissions and fees</td><td colspan="2">1,051 </td><td></td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">2,128 </td><td></td><td colspan="3"></td><td colspan="2">1,981 </td><td></td></tr><tr><td colspan="3">Market making</td><td colspan="2">4,225 </td><td></td><td colspan="3"></td><td colspan="2">4,351 </td><td></td><td colspan="3"></td><td colspan="2">10,217 </td><td></td><td colspan="3"></td><td colspan="2">9,784 </td><td></td></tr><tr><td colspan="3">Other principal transactions</td><td colspan="2">947 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">1,907 </td><td></td><td colspan="3"></td><td colspan="2">234 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="2">10,489 </td><td></td><td colspan="3"></td><td colspan="2">9,211 </td><td></td><td colspan="3"></td><td colspan="2">23,094 </td><td></td><td colspan="3"></td><td colspan="2">19,654 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">20,440 </td><td></td><td colspan="3"></td><td colspan="2">16,836 </td><td></td><td colspan="3"></td><td colspan="2">39,995 </td><td></td><td colspan="3"></td><td colspan="2">31,774 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">18,198 </td><td></td><td colspan="3"></td><td colspan="2">15,152 </td><td></td><td colspan="3"></td><td colspan="2">36,145 </td><td></td><td colspan="3"></td><td colspan="2">28,309 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">2,242 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">3,850 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td></tr><tr><td colspan="3">Total net revenues</td><td colspan="2">12,731 </td><td></td><td colspan="3"></td><td colspan="2">10,895 </td><td></td><td colspan="3"></td><td colspan="2">26,944 </td><td></td><td colspan="3"></td><td colspan="2">23,119 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">615 </td><td></td><td colspan="3"></td><td colspan="2">600 </td><td></td><td colspan="3"></td><td colspan="2">444 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">4,240 </td><td></td><td colspan="3"></td><td colspan="2">3,619 </td><td></td><td colspan="3"></td><td colspan="2">8,825 </td><td></td><td colspan="3"></td><td colspan="2">7,709 </td><td></td></tr><tr><td colspan="3">Transaction based</td><td colspan="2">1,654 </td><td></td><td colspan="3"></td><td colspan="2">1,385 </td><td></td><td colspan="3"></td><td colspan="2">3,151 </td><td></td><td colspan="3"></td><td colspan="2">2,790 </td><td></td></tr><tr><td colspan="3">Market development</td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">146 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Communications and technology</td><td colspan="2">500 </td><td></td><td colspan="3"></td><td colspan="2">482 </td><td></td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">948 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">646 </td><td></td><td colspan="3"></td><td colspan="2">1,594 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">2,564 </td><td></td></tr><tr><td colspan="3">Occupancy</td><td colspan="2">244 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">491 </td><td></td><td colspan="3"></td><td colspan="2">518 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">393 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td><td colspan="3"></td><td colspan="2">777 </td><td></td><td colspan="3"></td><td colspan="2">775 </td><td></td></tr><tr><td colspan="3">Other expenses</td><td colspan="2">703 </td><td></td><td colspan="3"></td><td colspan="2">673 </td><td></td><td colspan="3"></td><td colspan="2">1,398 </td><td></td><td colspan="3"></td><td colspan="2">1,324 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,533 </td><td></td><td colspan="3"></td><td colspan="2">8,544 </td><td></td><td colspan="3"></td><td colspan="2">17,191 </td><td></td><td colspan="3"></td><td colspan="2">16,946 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Pre-tax earnings</td><td colspan="2">3,916 </td><td></td><td colspan="3"></td><td colspan="2">1,736 </td><td></td><td colspan="3"></td><td colspan="2">9,153 </td><td></td><td colspan="3"></td><td colspan="2">5,729 </td><td></td></tr><tr><td colspan="3">Provision for taxes</td><td colspan="2">873 </td><td></td><td colspan="3"></td><td colspan="2">520 </td><td></td><td colspan="3"></td><td colspan="2">1,978 </td><td></td><td colspan="3"></td><td colspan="2">1,279 </td><td></td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">3,043 </td><td></td><td colspan="3"></td><td colspan="2">1,216 </td><td></td><td colspan="3"></td><td colspan="2">7,175 </td><td></td><td colspan="3"></td><td colspan="2">4,450 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">152 </td><td></td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">353 </td><td></td><td colspan="3"></td><td colspan="2">292 </td><td></td></tr><tr><td colspan="3">Net earnings applicable to common shareholders</td><td>$</td><td>2,891 </td><td></td><td colspan="3"></td><td>$</td><td>1,071 </td><td></td><td colspan="3"></td><td>$</td><td>6,822 </td><td></td><td colspan="3"></td><td>$</td><td>4,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>8.73 </td><td></td><td colspan="3"></td><td>$</td><td>3.09 </td><td></td><td colspan="3"></td><td>$</td><td>20.44 </td><td></td><td colspan="3"></td><td>$</td><td>12.00 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>8.62 </td><td></td><td colspan="3"></td><td>$</td><td>3.08 </td><td></td><td colspan="3"></td><td>$</td><td>20.21 </td><td></td><td colspan="3"></td><td>$</td><td>11.91 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">329.8</td><td colspan="3"></td><td colspan="3">342.3</td><td colspan="3"></td><td colspan="3">332.6</td><td colspan="3"></td><td colspan="3">344.4</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">335.5</td><td colspan="3"></td><td colspan="3">347.2</td><td colspan="3"></td><td colspan="3">337.5</td><td colspan="3"></td><td colspan="3">349.2</td></tr></table> Consolidated Statements of Comprehensive Income (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net earnings</td><td>$</td><td>3,043 </td><td></td><td colspan="3"></td><td>$</td><td>1,216 </td><td></td><td colspan="3"></td><td>$</td><td>7,175 </td><td></td><td colspan="3"></td><td>$</td><td>4,450 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss) adjustments, net of tax:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Currency translation</td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Debt valuation adjustment</td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">(610)</td><td></td><td colspan="3"></td><td colspan="2">(288)</td><td></td><td colspan="3"></td><td colspan="2">(611)</td><td></td></tr><tr><td colspan="3">Pension and postretirement liabilities</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">24 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities</td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">403 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">417 </td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">(227)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,460 </td><td></td><td colspan="3"></td><td>$</td><td>580 </td><td></td><td colspan="3"></td><td>$</td><td>7,193 </td><td></td><td colspan="3"></td><td>$</td><td>4,223 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">1</td><td colspan="3"></td><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td></tr></table> , Bank of New York Mellon Corp 10-Q form for quarterly period ended 2024-06-30, page 49: <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">Item 1. Financial Statements</td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Income Statement (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Quarter ended</td><td colspan="3"></td><td colspan="6">Year-to-date</td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">March 31, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td></tr><tr><td colspan="3">(in millions)</td><td colspan="3"></td></tr><tr><td colspan="3">Fee and other revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment services fees</td><td>$</td><td>2,359 </td><td></td><td>$</td><td>2,278 </td><td></td><td>$</td><td>2,252 </td><td></td><td colspan="3"></td><td>$</td><td>4,637 </td><td></td><td>$</td><td>4,371 </td><td></td></tr><tr><td colspan="3">Investment management and performance fees</td><td colspan="2">761 </td><td></td><td colspan="2">776 </td><td></td><td colspan="2">762 </td><td></td><td colspan="3"></td><td colspan="2">1,537 </td><td></td><td colspan="2">1,538 </td><td></td></tr><tr><td colspan="3">Foreign exchange revenue</td><td colspan="2">184 </td><td></td><td colspan="2">152 </td><td></td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="2">334 </td><td></td></tr><tr><td colspan="3">Financing-related fees</td><td colspan="2">53 </td><td></td><td colspan="2">57 </td><td></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td><td colspan="2">102 </td><td></td></tr><tr><td colspan="3">Distribution and servicing fees</td><td colspan="2">41 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="2">68 </td><td></td></tr><tr><td colspan="3">Total fee revenue</td><td colspan="2">3,398 </td><td></td><td colspan="2">3,305 </td><td></td><td colspan="2">3,257 </td><td></td><td colspan="3"></td><td colspan="2">6,703 </td><td></td><td colspan="2">6,413 </td><td></td></tr><tr><td colspan="3">Investment and other revenue (a)</td><td colspan="2">169 </td><td></td><td colspan="2">182 </td><td></td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">351 </td><td></td><td colspan="2">278 </td><td></td></tr><tr><td colspan="3">Total fee and other revenue (a)</td><td colspan="2">3,567 </td><td></td><td colspan="2">3,487 </td><td></td><td colspan="2">3,404 </td><td></td><td colspan="3"></td><td colspan="2">7,054 </td><td></td><td colspan="2">6,691 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">6,392 </td><td></td><td colspan="2">6,096 </td><td></td><td colspan="2">5,224 </td><td></td><td colspan="3"></td><td colspan="2">12,488 </td><td></td><td colspan="2">9,166 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">5,362 </td><td></td><td colspan="2">5,056 </td><td></td><td colspan="2">4,124 </td><td></td><td colspan="3"></td><td colspan="2">10,418 </td><td></td><td colspan="2">6,938 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">1,030 </td><td></td><td colspan="2">1,040 </td><td></td><td colspan="2">1,100 </td><td></td><td colspan="3"></td><td colspan="2">2,070 </td><td></td><td colspan="2">2,228 </td><td></td></tr><tr><td colspan="3">Total revenue (a)</td><td colspan="2">4,597 </td><td></td><td colspan="2">4,527 </td><td></td><td colspan="2">4,504 </td><td></td><td colspan="3"></td><td colspan="2">9,124 </td><td></td><td colspan="2">8,919 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">- </td><td></td><td colspan="2">27 </td><td></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Staff</td><td colspan="2">1,720 </td><td></td><td colspan="2">1,857 </td><td></td><td colspan="2">1,718 </td><td></td><td colspan="3"></td><td colspan="2">3,577 </td><td></td><td colspan="2">3,509 </td><td></td></tr><tr><td colspan="3">Software and equipment</td><td colspan="2">476 </td><td></td><td colspan="2">475 </td><td></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="2">879 </td><td></td></tr><tr><td colspan="3">Professional, legal and other purchased services</td><td colspan="2">374 </td><td></td><td colspan="2">349 </td><td></td><td colspan="2">378 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="2">753 </td><td></td></tr><tr><td colspan="3">Net occupancy</td><td colspan="2">134 </td><td></td><td colspan="2">124 </td><td></td><td colspan="2">121 </td><td></td><td colspan="3"></td><td colspan="2">258 </td><td></td><td colspan="2">240 </td><td></td></tr><tr><td colspan="3">Sub-custodian and clearing</td><td colspan="2">134 </td><td></td><td colspan="2">119 </td><td></td><td colspan="2">119 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="2">237 </td><td></td></tr><tr><td colspan="3">Distribution and servicing</td><td colspan="2">88 </td><td></td><td colspan="2">96 </td><td></td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td><td colspan="2">178 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="2">50 </td><td></td><td colspan="2">36 </td><td></td><td colspan="2">47 </td><td></td><td colspan="3"></td><td colspan="2">86 </td><td></td><td colspan="2">86 </td><td></td></tr><tr><td colspan="3">Bank assessment charges</td><td colspan="2">(7)</td><td></td><td colspan="2">17 </td><td></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="2">81 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Amortization of intangible assets</td><td colspan="2">13 </td><td></td><td colspan="2">12 </td><td></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">88 </td><td></td><td colspan="2">91 </td><td></td><td colspan="2">130 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="2">220 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">3,070 </td><td></td><td colspan="2">3,176 </td><td></td><td colspan="2">3,111 </td><td></td><td colspan="3"></td><td colspan="2">6,246 </td><td></td><td colspan="2">6,211 </td><td></td></tr><tr><td colspan="3">Income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes (a)</td><td colspan="2">1,527 </td><td></td><td colspan="2">1,324 </td><td></td><td colspan="2">1,388 </td><td></td><td colspan="3"></td><td colspan="2">2,851 </td><td></td><td colspan="2">2,676 </td><td></td></tr><tr><td colspan="3">Provision for income taxes (a)</td><td colspan="2">357 </td><td></td><td colspan="2">297 </td><td></td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">654 </td><td></td><td colspan="2">621 </td><td></td></tr><tr><td colspan="3">Net income (a)</td><td colspan="2">1,170 </td><td></td><td colspan="2">1,027 </td><td></td><td colspan="2">1,073 </td><td></td><td colspan="3"></td><td colspan="2">2,197 </td><td></td><td colspan="2">2,055 </td><td></td></tr><tr><td colspan="3">Net (income) attributable to noncontrolling interests related to consolidated investment management funds</td><td colspan="2">(2)</td><td></td><td colspan="2">(2)</td><td></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="2">(1)</td><td></td></tr><tr><td colspan="3">Net income applicable to shareholders of The Bank of New York Mellon Corporation (a)</td><td colspan="2">1,168 </td><td></td><td colspan="2">1,025 </td><td></td><td colspan="2">1,072 </td><td></td><td colspan="3"></td><td colspan="2">2,193 </td><td></td><td colspan="2">2,054 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">(25)</td><td></td><td colspan="2">(72)</td><td></td><td colspan="2">(36)</td><td></td><td colspan="3"></td><td colspan="2">(97)</td><td></td><td colspan="2">(107)</td><td></td></tr><tr><td colspan="3">Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a)</td><td>$</td><td>1,143 </td><td></td><td>$</td><td>953 </td><td></td><td>$</td><td>1,036 </td><td></td><td colspan="3"></td><td>$</td><td>2,096 </td><td></td><td>$</td><td>1,947 </td><td></td></tr></table>(a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49
PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">in millions, except per share amounts</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Revenues</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment banking</td><td>$</td><td>1,733 </td><td></td><td colspan="3"></td><td>$</td><td>1,432 </td><td></td><td colspan="3"></td><td>$</td><td>3,818 </td><td></td><td colspan="3"></td><td>$</td><td>3,010 </td><td></td></tr><tr><td colspan="3">Investment management</td><td colspan="2">2,533 </td><td></td><td colspan="3"></td><td colspan="2">2,356 </td><td></td><td colspan="3"></td><td colspan="2">5,024 </td><td></td><td colspan="3"></td><td colspan="2">4,645 </td><td></td></tr><tr><td colspan="3">Commissions and fees</td><td colspan="2">1,051 </td><td></td><td colspan="3"></td><td colspan="2">893 </td><td></td><td colspan="3"></td><td colspan="2">2,128 </td><td></td><td colspan="3"></td><td colspan="2">1,981 </td><td></td></tr><tr><td colspan="3">Market making</td><td colspan="2">4,225 </td><td></td><td colspan="3"></td><td colspan="2">4,351 </td><td></td><td colspan="3"></td><td colspan="2">10,217 </td><td></td><td colspan="3"></td><td colspan="2">9,784 </td><td></td></tr><tr><td colspan="3">Other principal transactions</td><td colspan="2">947 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="3"></td><td colspan="2">1,907 </td><td></td><td colspan="3"></td><td colspan="2">234 </td><td></td></tr><tr><td colspan="3">Total non-interest revenues</td><td colspan="2">10,489 </td><td></td><td colspan="3"></td><td colspan="2">9,211 </td><td></td><td colspan="3"></td><td colspan="2">23,094 </td><td></td><td colspan="3"></td><td colspan="2">19,654 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">20,440 </td><td></td><td colspan="3"></td><td colspan="2">16,836 </td><td></td><td colspan="3"></td><td colspan="2">39,995 </td><td></td><td colspan="3"></td><td colspan="2">31,774 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">18,198 </td><td></td><td colspan="3"></td><td colspan="2">15,152 </td><td></td><td colspan="3"></td><td colspan="2">36,145 </td><td></td><td colspan="3"></td><td colspan="2">28,309 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">2,242 </td><td></td><td colspan="3"></td><td colspan="2">1,684 </td><td></td><td colspan="3"></td><td colspan="2">3,850 </td><td></td><td colspan="3"></td><td colspan="2">3,465 </td><td></td></tr><tr><td colspan="3">Total net revenues</td><td colspan="2">12,731 </td><td></td><td colspan="3"></td><td colspan="2">10,895 </td><td></td><td colspan="3"></td><td colspan="2">26,944 </td><td></td><td colspan="3"></td><td colspan="2">23,119 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">282 </td><td></td><td colspan="3"></td><td colspan="2">615 </td><td></td><td colspan="3"></td><td colspan="2">600 </td><td></td><td colspan="3"></td><td colspan="2">444 </td><td></td></tr><tr><td colspan="3">Operating expenses</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Compensation and benefits</td><td colspan="2">4,240 </td><td></td><td colspan="3"></td><td colspan="2">3,619 </td><td></td><td colspan="3"></td><td colspan="2">8,825 </td><td></td><td colspan="3"></td><td colspan="2">7,709 </td><td></td></tr><tr><td colspan="3">Transaction based</td><td colspan="2">1,654 </td><td></td><td colspan="3"></td><td colspan="2">1,385 </td><td></td><td colspan="3"></td><td colspan="2">3,151 </td><td></td><td colspan="3"></td><td colspan="2">2,790 </td><td></td></tr><tr><td colspan="3">Market development</td><td colspan="2">153 </td><td></td><td colspan="3"></td><td colspan="2">146 </td><td></td><td colspan="3"></td><td colspan="2">306 </td><td></td><td colspan="3"></td><td colspan="2">318 </td><td></td></tr><tr><td colspan="3">Communications and technology</td><td colspan="2">500 </td><td></td><td colspan="3"></td><td colspan="2">482 </td><td></td><td colspan="3"></td><td colspan="2">970 </td><td></td><td colspan="3"></td><td colspan="2">948 </td><td></td></tr><tr><td colspan="3">Depreciation and amortization</td><td colspan="2">646 </td><td></td><td colspan="3"></td><td colspan="2">1,594 </td><td></td><td colspan="3"></td><td colspan="2">1,273 </td><td></td><td colspan="3"></td><td colspan="2">2,564 </td><td></td></tr><tr><td colspan="3">Occupancy</td><td colspan="2">244 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="3"></td><td colspan="2">491 </td><td></td><td colspan="3"></td><td colspan="2">518 </td><td></td></tr><tr><td colspan="3">Professional fees</td><td colspan="2">393 </td><td></td><td colspan="3"></td><td colspan="2">392 </td><td></td><td colspan="3"></td><td colspan="2">777 </td><td></td><td colspan="3"></td><td colspan="2">775 </td><td></td></tr><tr><td colspan="3">Other expenses</td><td colspan="2">703 </td><td></td><td colspan="3"></td><td colspan="2">673 </td><td></td><td colspan="3"></td><td colspan="2">1,398 </td><td></td><td colspan="3"></td><td colspan="2">1,324 </td><td></td></tr><tr><td colspan="3">Total operating expenses</td><td colspan="2">8,533 </td><td></td><td colspan="3"></td><td colspan="2">8,544 </td><td></td><td colspan="3"></td><td colspan="2">17,191 </td><td></td><td colspan="3"></td><td colspan="2">16,946 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Pre-tax earnings</td><td colspan="2">3,916 </td><td></td><td colspan="3"></td><td colspan="2">1,736 </td><td></td><td colspan="3"></td><td colspan="2">9,153 </td><td></td><td colspan="3"></td><td colspan="2">5,729 </td><td></td></tr><tr><td colspan="3">Provision for taxes</td><td colspan="2">873 </td><td></td><td colspan="3"></td><td colspan="2">520 </td><td></td><td colspan="3"></td><td colspan="2">1,978 </td><td></td><td colspan="3"></td><td colspan="2">1,279 </td><td></td></tr><tr><td colspan="3">Net earnings</td><td colspan="2">3,043 </td><td></td><td colspan="3"></td><td colspan="2">1,216 </td><td></td><td colspan="3"></td><td colspan="2">7,175 </td><td></td><td colspan="3"></td><td colspan="2">4,450 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">152 </td><td></td><td colspan="3"></td><td colspan="2">145 </td><td></td><td colspan="3"></td><td colspan="2">353 </td><td></td><td colspan="3"></td><td colspan="2">292 </td><td></td></tr><tr><td colspan="3">Net earnings applicable to common shareholders</td><td>$</td><td>2,891 </td><td></td><td colspan="3"></td><td>$</td><td>1,071 </td><td></td><td colspan="3"></td><td>$</td><td>6,822 </td><td></td><td colspan="3"></td><td>$</td><td>4,158 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Earnings per common share</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td>$</td><td>8.73 </td><td></td><td colspan="3"></td><td>$</td><td>3.09 </td><td></td><td colspan="3"></td><td>$</td><td>20.44 </td><td></td><td colspan="3"></td><td>$</td><td>12.00 </td><td></td></tr><tr><td colspan="3">Diluted</td><td>$</td><td>8.62 </td><td></td><td colspan="3"></td><td>$</td><td>3.08 </td><td></td><td colspan="3"></td><td>$</td><td>20.21 </td><td></td><td colspan="3"></td><td>$</td><td>11.91 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Average common shares</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Basic</td><td colspan="3">329.8</td><td colspan="3"></td><td colspan="3">342.3</td><td colspan="3"></td><td colspan="3">332.6</td><td colspan="3"></td><td colspan="3">344.4</td></tr><tr><td colspan="3">Diluted</td><td colspan="3">335.5</td><td colspan="3"></td><td colspan="3">347.2</td><td colspan="3"></td><td colspan="3">337.5</td><td colspan="3"></td><td colspan="3">349.2</td></tr></table> Consolidated Statements of Comprehensive Income (Unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3"> </td><td colspan="9">Three MonthsEnded June</td><td colspan="3"></td><td colspan="9">Six MonthsEnded June</td></tr><tr><td colspan="3">$ in millions</td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td><td colspan="3"></td><td colspan="3">2024</td><td colspan="3"></td><td colspan="3">2023</td></tr><tr><td colspan="3">Net earnings</td><td>$</td><td>3,043 </td><td></td><td colspan="3"></td><td>$</td><td>1,216 </td><td></td><td colspan="3"></td><td>$</td><td>7,175 </td><td></td><td colspan="3"></td><td>$</td><td>4,450 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss) adjustments, net of tax:</td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"> </td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Currency translation</td><td colspan="2">(4)</td><td></td><td colspan="3"></td><td colspan="2">(12)</td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">(43)</td><td></td></tr><tr><td colspan="3">Debt valuation adjustment</td><td colspan="2">268 </td><td></td><td colspan="3"></td><td colspan="2">(610)</td><td></td><td colspan="3"></td><td colspan="2">(288)</td><td></td><td colspan="3"></td><td colspan="2">(611)</td><td></td></tr><tr><td colspan="3">Pension and postretirement liabilities</td><td colspan="2">6 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="3"></td><td colspan="2">22 </td><td></td><td colspan="3"></td><td colspan="2">24 </td><td></td></tr><tr><td colspan="3">Available-for-sale securities</td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">(24)</td><td></td><td colspan="3"></td><td colspan="2">262 </td><td></td><td colspan="3"></td><td colspan="2">403 </td><td></td></tr><tr><td colspan="3">Other comprehensive income/(loss)</td><td colspan="2">417 </td><td></td><td colspan="3"></td><td colspan="2">(636)</td><td></td><td colspan="3"></td><td colspan="2">18 </td><td></td><td colspan="3"></td><td colspan="2">(227)</td><td></td></tr><tr><td colspan="3">Comprehensive income</td><td>$</td><td>3,460 </td><td></td><td colspan="3"></td><td>$</td><td>580 </td><td></td><td colspan="3"></td><td>$</td><td>7,193 </td><td></td><td colspan="3"></td><td>$</td><td>4,223 </td><td></td></tr></table>The accompanying notes are an integral part of these consolidated financial statements. <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3">1</td><td colspan="3"></td><td colspan="3">Goldman Sachs June 2024 Form 10-Q</td></tr></table> , <table><tr><td></td><td></td><td></td></tr><tr><td colspan="3">Item 1. Financial Statements</td></tr><tr><td colspan="3">The Bank of New York Mellon Corporation (and its subsidiaries)</td></tr></table> Consolidated Income Statement (unaudited) <table><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="3"></td><td colspan="9">Quarter ended</td><td colspan="3"></td><td colspan="6">Year-to-date</td></tr><tr><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">March 31, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td><td colspan="3"></td><td colspan="3" rowspan="2">June 30, 2024</td><td colspan="3" rowspan="2">June 30, 2023</td></tr><tr><td colspan="3">(in millions)</td><td colspan="3"></td></tr><tr><td colspan="3">Fee and other revenue</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Investment services fees</td><td>$</td><td>2,359 </td><td></td><td>$</td><td>2,278 </td><td></td><td>$</td><td>2,252 </td><td></td><td colspan="3"></td><td>$</td><td>4,637 </td><td></td><td>$</td><td>4,371 </td><td></td></tr><tr><td colspan="3">Investment management and performance fees</td><td colspan="2">761 </td><td></td><td colspan="2">776 </td><td></td><td colspan="2">762 </td><td></td><td colspan="3"></td><td colspan="2">1,537 </td><td></td><td colspan="2">1,538 </td><td></td></tr><tr><td colspan="3">Foreign exchange revenue</td><td colspan="2">184 </td><td></td><td colspan="2">152 </td><td></td><td colspan="2">158 </td><td></td><td colspan="3"></td><td colspan="2">336 </td><td></td><td colspan="2">334 </td><td></td></tr><tr><td colspan="3">Financing-related fees</td><td colspan="2">53 </td><td></td><td colspan="2">57 </td><td></td><td colspan="2">50 </td><td></td><td colspan="3"></td><td colspan="2">110 </td><td></td><td colspan="2">102 </td><td></td></tr><tr><td colspan="3">Distribution and servicing fees</td><td colspan="2">41 </td><td></td><td colspan="2">42 </td><td></td><td colspan="2">35 </td><td></td><td colspan="3"></td><td colspan="2">83 </td><td></td><td colspan="2">68 </td><td></td></tr><tr><td colspan="3">Total fee revenue</td><td colspan="2">3,398 </td><td></td><td colspan="2">3,305 </td><td></td><td colspan="2">3,257 </td><td></td><td colspan="3"></td><td colspan="2">6,703 </td><td></td><td colspan="2">6,413 </td><td></td></tr><tr><td colspan="3">Investment and other revenue (a)</td><td colspan="2">169 </td><td></td><td colspan="2">182 </td><td></td><td colspan="2">147 </td><td></td><td colspan="3"></td><td colspan="2">351 </td><td></td><td colspan="2">278 </td><td></td></tr><tr><td colspan="3">Total fee and other revenue (a)</td><td colspan="2">3,567 </td><td></td><td colspan="2">3,487 </td><td></td><td colspan="2">3,404 </td><td></td><td colspan="3"></td><td colspan="2">7,054 </td><td></td><td colspan="2">6,691 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Interest income</td><td colspan="2">6,392 </td><td></td><td colspan="2">6,096 </td><td></td><td colspan="2">5,224 </td><td></td><td colspan="3"></td><td colspan="2">12,488 </td><td></td><td colspan="2">9,166 </td><td></td></tr><tr><td colspan="3">Interest expense</td><td colspan="2">5,362 </td><td></td><td colspan="2">5,056 </td><td></td><td colspan="2">4,124 </td><td></td><td colspan="3"></td><td colspan="2">10,418 </td><td></td><td colspan="2">6,938 </td><td></td></tr><tr><td colspan="3">Net interest income</td><td colspan="2">1,030 </td><td></td><td colspan="2">1,040 </td><td></td><td colspan="2">1,100 </td><td></td><td colspan="3"></td><td colspan="2">2,070 </td><td></td><td colspan="2">2,228 </td><td></td></tr><tr><td colspan="3">Total revenue (a)</td><td colspan="2">4,597 </td><td></td><td colspan="2">4,527 </td><td></td><td colspan="2">4,504 </td><td></td><td colspan="3"></td><td colspan="2">9,124 </td><td></td><td colspan="2">8,919 </td><td></td></tr><tr><td colspan="3">Provision for credit losses</td><td colspan="2">- </td><td></td><td colspan="2">27 </td><td></td><td colspan="2">5 </td><td></td><td colspan="3"></td><td colspan="2">27 </td><td></td><td colspan="2">32 </td><td></td></tr><tr><td colspan="3">Noninterest expense</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Staff</td><td colspan="2">1,720 </td><td></td><td colspan="2">1,857 </td><td></td><td colspan="2">1,718 </td><td></td><td colspan="3"></td><td colspan="2">3,577 </td><td></td><td colspan="2">3,509 </td><td></td></tr><tr><td colspan="3">Software and equipment</td><td colspan="2">476 </td><td></td><td colspan="2">475 </td><td></td><td colspan="2">450 </td><td></td><td colspan="3"></td><td colspan="2">951 </td><td></td><td colspan="2">879 </td><td></td></tr><tr><td colspan="3">Professional, legal and other purchased services</td><td colspan="2">374 </td><td></td><td colspan="2">349 </td><td></td><td colspan="2">378 </td><td></td><td colspan="3"></td><td colspan="2">723 </td><td></td><td colspan="2">753 </td><td></td></tr><tr><td colspan="3">Net occupancy</td><td colspan="2">134 </td><td></td><td colspan="2">124 </td><td></td><td colspan="2">121 </td><td></td><td colspan="3"></td><td colspan="2">258 </td><td></td><td colspan="2">240 </td><td></td></tr><tr><td colspan="3">Sub-custodian and clearing</td><td colspan="2">134 </td><td></td><td colspan="2">119 </td><td></td><td colspan="2">119 </td><td></td><td colspan="3"></td><td colspan="2">253 </td><td></td><td colspan="2">237 </td><td></td></tr><tr><td colspan="3">Distribution and servicing</td><td colspan="2">88 </td><td></td><td colspan="2">96 </td><td></td><td colspan="2">93 </td><td></td><td colspan="3"></td><td colspan="2">184 </td><td></td><td colspan="2">178 </td><td></td></tr><tr><td colspan="3">Business development</td><td colspan="2">50 </td><td></td><td colspan="2">36 </td><td></td><td colspan="2">47 </td><td></td><td colspan="3"></td><td colspan="2">86 </td><td></td><td colspan="2">86 </td><td></td></tr><tr><td colspan="3">Bank assessment charges</td><td colspan="2">(7)</td><td></td><td colspan="2">17 </td><td></td><td colspan="2">41 </td><td></td><td colspan="3"></td><td colspan="2">10 </td><td></td><td colspan="2">81 </td><td></td></tr><tr><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Amortization of intangible assets</td><td colspan="2">13 </td><td></td><td colspan="2">12 </td><td></td><td colspan="2">14 </td><td></td><td colspan="3"></td><td colspan="2">25 </td><td></td><td colspan="2">28 </td><td></td></tr><tr><td colspan="3">Other</td><td colspan="2">88 </td><td></td><td colspan="2">91 </td><td></td><td colspan="2">130 </td><td></td><td colspan="3"></td><td colspan="2">179 </td><td></td><td colspan="2">220 </td><td></td></tr><tr><td colspan="3">Total noninterest expense</td><td colspan="2">3,070 </td><td></td><td colspan="2">3,176 </td><td></td><td colspan="2">3,111 </td><td></td><td colspan="3"></td><td colspan="2">6,246 </td><td></td><td colspan="2">6,211 </td><td></td></tr><tr><td colspan="3">Income</td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td><td colspan="3"></td></tr><tr><td colspan="3">Income before income taxes (a)</td><td colspan="2">1,527 </td><td></td><td colspan="2">1,324 </td><td></td><td colspan="2">1,388 </td><td></td><td colspan="3"></td><td colspan="2">2,851 </td><td></td><td colspan="2">2,676 </td><td></td></tr><tr><td colspan="3">Provision for income taxes (a)</td><td colspan="2">357 </td><td></td><td colspan="2">297 </td><td></td><td colspan="2">315 </td><td></td><td colspan="3"></td><td colspan="2">654 </td><td></td><td colspan="2">621 </td><td></td></tr><tr><td colspan="3">Net income (a)</td><td colspan="2">1,170 </td><td></td><td colspan="2">1,027 </td><td></td><td colspan="2">1,073 </td><td></td><td colspan="3"></td><td colspan="2">2,197 </td><td></td><td colspan="2">2,055 </td><td></td></tr><tr><td colspan="3">Net (income) attributable to noncontrolling interests related to consolidated investment management funds</td><td colspan="2">(2)</td><td></td><td colspan="2">(2)</td><td></td><td colspan="2">(1)</td><td></td><td colspan="3"></td><td colspan="2">(4)</td><td></td><td colspan="2">(1)</td><td></td></tr><tr><td colspan="3">Net income applicable to shareholders of The Bank of New York Mellon Corporation (a)</td><td colspan="2">1,168 </td><td></td><td colspan="2">1,025 </td><td></td><td colspan="2">1,072 </td><td></td><td colspan="3"></td><td colspan="2">2,193 </td><td></td><td colspan="2">2,054 </td><td></td></tr><tr><td colspan="3">Preferred stock dividends</td><td colspan="2">(25)</td><td></td><td colspan="2">(72)</td><td></td><td colspan="2">(36)</td><td></td><td colspan="3"></td><td colspan="2">(97)</td><td></td><td colspan="2">(107)</td><td></td></tr><tr><td colspan="3">Net income applicable to common shareholders of The Bank of New York Mellon Corporation (a)</td><td>$</td><td>1,143 </td><td></td><td>$</td><td>953 </td><td></td><td>$</td><td>1,036 </td><td></td><td colspan="3"></td><td>$</td><td>2,096 </td><td></td><td>$</td><td>1,947 </td><td></td></tr></table>(a) Results for the quarter ended June 30, 2023 and the six months ended June 30, 2023 were restated to reflect the retrospective application of adopting new accounting guidance in the first quarter of 2024 related to our investments in renewable energy projects using the proportional amortization method (ASU 2023-02). See Note 2 of the Notes to Consolidated Financial Statements for additional information. BNY 49